Stellar (XLM) has experienced an impressive surge of over 400% in the last 30 days, reaching $0.63, its highest price since 2021. However, the current trend indicators suggest that the momentum may be weakening, raising the possibility of potential consolidation or a slowdown in the bullish movement. Despite this, the uptrend remains intact due to strong market interest and bullish sentiment, with the potential to push XLM towards the $0.70 target.
The Stellar DMI chart shows a declining ADX of 23.6, down significantly from over 40 just two days ago, indicating weakening trend momentum. While the trend remains positive, the diminishing ADX suggests a potential consolidation period or a slowdown in the bullish movement. The positive directional indicator (D+) at 24.7 and the negative directional indicator (D-) at 14.9 still show a clear bullish bias, with buying pressure outweighing selling pressure.
The negative CMF value of -0.16 for XLM suggests a sustained negative trend since November 26, after four consecutive days of positivity. The Chaikin Money Flow indicates that selling activity has outweighed buying, potentially limiting the recent bullish momentum. However, the moderate selling pressure reflected in the CMF value is less severe than during stronger corrections, indicating a shift in sentiment but not an extreme decline.
Stellar price recently hit $0.63, its highest level since 2021, with a remarkable 433.84% increase in the last 30 days. If the current uptrend regains momentum, XLM could retest this resistance level and potentially reach $0.70, representing a 37% increase from current levels. However, if the uptrend falters and selling pressure rises, XLM may face a reversal and test key support at $0.41, crucial for maintaining its medium-term bullish outlook.
In conclusion, while Stellar (XLM) has seen a significant price surge in recent weeks, the current trend indicators suggest a potential weakening of momentum. The positive sentiment and market interest continue to support the uptrend, but a period of consolidation or a slowdown in the bullish movement may be on the horizon. Traders and investors should monitor the ADX, DMI and CMF indicators to gauge the strength of the trend and potential price movements in the coming days.
