Stellar (XLM) Recovers as Inflows Rise: Bullish Momentum?
Stellar's price is showing signs of a potential rebound following a two-week dip, driven by increased investment activity. The altcoin is now attempting to regain lost value.
Investor Interest Returns to Stellar
The Chaikin Money Flow (CMF) indicator, which measures capital flow into an asset, is trending upward for Stellar. This suggests growing inflows into XLM, which could be a positive signal. However, the CMF remains below the zero line, indicating that inflows need to strengthen to trigger a sustained uptrend.
For these inflows to have a lasting impact on XLM's price, the CMF needs to decisively cross above the zero line. While this could lead to further recovery in the coming weeks, investors should closely monitor the asset to ensure the momentum continues.
Ethereum's technical indicators also point towards renewed bullish momentum. The Relative Strength Index (RSI) has returned to positive territory, above the neutral 50.0 mark, after a brief dip into bearish territory. This reversal suggests XLM is regaining strength.
The RSI indicates improving investor sentiment. The prior bearishness likely stemmed from broader market uncertainty. However, with the RSI back in the positive range, the probability of further price increases has risen.
XLM Price Targets Recovery
Stellar's price is currently trading at $0.411, just below the $0.424 resistance level. Overcoming this resistance is crucial for XLM to recover recent losses and continue its upward movement. The Parabolic SAR moving below the candlesticks after two weeks suggests the downtrend is ending.
If Stellar successfully flips $0.424 into support, it could pave the way for a rise past $0.445 and potentially reach $0.470. This would allow XLM to recover a significant portion of its losses from the past two weeks and resume its uptrend.
However, if overall market conditions deteriorate and investor sentiment turns negative, Stellar could decline. Failure to maintain support at $0.424 could lead XLM to fall to $0.393, with further bearish momentum potentially pushing the price to $0.359, invalidating the bullish outlook.
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