Stellar (XLM) has experienced a notable 34% price increase in the past week. Currently trading between a resistance level of $0.47 and support at $0.41, the coin's future trajectory remains uncertain.
A golden cross formation triggered the recent gains, but indicators like the Chaikin Money Flow (CMF) and Directional Movement Index (DMI) suggest a possible weakening of this upward trend. Breaking $0.47 resistance could boost XLM toward $0.51 or $0.60.
However, failure to maintain support at $0.41 might lead to a sharp correction. The Average Directional Index (ADX) signifies a strong trend at 40.1, though it has declined from 52.6, indicating easing momentum.
The DMI shows buying pressure (+DI) dropping from 40.3 to 25, while selling pressure (-DI) rose from 7.9 to 14.6, suggesting sellers are gaining foothold.
Consistent selling pressure and lack of buying momentum could lead to consolidation or reversal. XLM's CMF signals a shift toward selling interest, falling from 0.41 to -0.14, highlighting declining investor confidence.
The price could be further pressured if the CMF remains negative, continuing to impact XLM short-term market movements. In contrast, a supportive environment might stabilize or elevate prices if buying momentum strengthens again.
