Stellar (XLM) has experienced an impressive rally in November, with its price surging over 400% in the last 30 days to reach $0.63, its highest level since 2021. However, the current trend indicators for XLM suggest that the uptrend may be losing its strength. The Average Directional Index (ADX) has dropped significantly, indicating weakening momentum. While the positive directional indicator (D+) remains higher than the negative directional indicator (D-), the overall trend may experience some consolidation or a slowdown in the bullish movement.
The Chaikin Money Flow (CMF) for XLM has been negative for three days, suggesting that selling pressure has outweighed buying pressure. This could potentially slow down the recent bullish momentum for the cryptocurrency. While the current CMF value of -0.16 indicates moderate selling pressure, it is not as extreme as levels seen during stronger corrections. If the CMF continues to trend downward, it could signal a weakening uptrend and increase the likelihood of a price pullback. Conversely, a return to positive territory would support continued price gains.
Despite the potential consolidation and weakening trend indicators, XLM price has shown impressive growth, up 433.84% in the last 30 days. If the current uptrend regains strength, XLM may retest its resistance level at $0.63 and potentially rise to $0.70, representing a 37% increase from its current levels. However, if the uptrend fails to sustain and selling pressure increases, XLM price could face a reversal and test its key support at $0.41. Maintaining this support level is crucial for XLM to maintain its medium-term bullish outlook and avoid a deeper correction.
In conclusion, while Stellar (XLM) has experienced significant price growth in recent weeks, the current trend indicators suggest that the uptrend may be losing its strength. The ADX and CMF indicators point to potential consolidation and a slowdown in the bullish movement. However, if the uptrend can regain momentum, XLM price may target $0.70 next. Traders should keep an eye on these indicators to assess the strength of the trend and make informed decisions on their XLM investments.
