Stellar (XLM) has seen its price rise by over 6% in the past 24 hours as it attempts to reclaim an $11 billion market cap. Technical indicators such as the Directional Movement Index (DMI) suggest an uptrend might be on the horizon, with increasing ADX values and +DI dominance indicating stronger buying momentum.
The Chaikin Money Flow (CMF) turning positive points to better capital inflows, hinting at a possible shift in market sentiment. Currently, XLM is trading between key levels and could rise towards $0.47 if bullish momentum persists, or retest support at $0.31 if the uptrend fails.
The DMI chart reveals XLM's ADX at 19.5, rising from below 15 in just three days, showing enhanced trend strength. A crossover with the +DI surpassing the -DI indicates buying pressure is now outpacing selling pressure, suggesting an early uptrend phase.
With the Average Directional Index (ADX) quantifying trend strength on a 0-100 scale, XLM's reading at 19.5 suggests weak trend momentum, yet its upward trajectory hints at building momentum, potentially reversing the recent downtrend if it continues rising above 20.
XLM's CMF, currently at 0.02, has shifted to positive territory after being negative since late December, reflecting increased buying pressure and signaling renewed investor confidence. This could indicate early signs of bullish momentum within the market.
The CMF, assessing money flow based on price and volume, shows a modest positive bias at 0.02, up from -0.20 two days ago. This improvement suggests significant sentiment change, with potential accumulation and support for price growth if the CMF continues upward.
Meanwhile, XLM's EMA lines maintain a bearish arrangement, with short-term lines below long-term ones. However, rising short-term EMAs could form a golden cross if they surpass long-term EMAs, potentially signaling a trend reversal.
Should upward momentum increase, Stellar's price might test resistance at $0.406, breaking which could clear a path towards $0.47. Conversely, failing to sustain an uptrend might see retesting of $0.31 support, with further declines possible if this level doesn't hold.
Key support and resistance zones will likely shape XLM's short-term path, with EMA structure offering insights on whether bullish forces will prevail or bearish dynamics will persist.
