The recent action of Stellar prices (XLM) has been faced with downward pressure, which caused concerns among investors. After a sharp increase of 97% earlier this month, cryptocurrency is now on the verge of erasure of these earnings.
The next few days will largely depend on broader market movements, which will play a central role in determining the recovery of Altcoin.
Stellar investors are retreating
The Chaikin Money Flow (CMF) indicator has shown a sharp decline, currently located in a three -week hollow. This suggests that stellar outputs are increasing, which is a negative signal for assets.
The rise in outings indicates that traders are less confident in the short -term perspectives of Stellar, which has an impact on prices’ action. Although the CMF is still in the positive area, it is dangerously close to crossing the negative zone.
If CMF slips into this area, this would point out that outputs prevail over the entries, which would increase the price of XLM more.
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Despite the downward trend, there are still bullish signs on the larger market. The relative resistance index (RSI) for stellar remains above the neutral level 50.0, which suggests that the bullish impulse has not completely dissipated.
The RSI even noted a slight increase, which indicates that there is still a certain interest in purchase for the market, in particular compared to wider market indices. The positive momentum underway on the wider cryptography market could help to alleviate some of Stellar outputs.
The XLM price needs a push
The XLM price is currently $ 0.426, and it tries to maintain above the support level of $ 0.424. The downward tendency observed in the past two weeks has threatened to reverse significant earnings made earlier this month.
If outings continue and sell pressure versions, Stellar’s price could drop $ 0.393, a crucial level of support. The loss of this support could push the price of XLM even lower, potentially reaching $ 0.359. This would eliminate a large part of recent gains, which has an impact on investor confidence.
On the other hand, if wider market conditions remain positive, XLM can find support at $ 0.393, preventing new decreases.
The only way to fully invalidate the lower thesis is that XLM takes up $ 0.445 as a support, although this seems unlikely in current market conditions.
The stellar position faces growing outings – is the XLM price at risk? appeared first on Beincrypto.
