Stellar’s price action shows signs of recovery after two weeks of downtrend as Altcoin saw a decline in value.
However, recent developments have shown that assets are bounced thanks to increased investment activity. Stellar is now trying to turn the tide and recover the lost ground.
Star investors are jumping in
The Chaikin Money Flow (CMF) indicator, which tracks capital flows to assets, shows an increase in Stellar. This suggests that XLM is witnessing an increase in influx, which could be a positive indication of Altcoin. However, the CMF is rising, but still below the zero line. This indicates that influx is not yet strong enough to cause a sustained upward trend.
For the inflow to continue and have a lasting impact on XLM prices, the CMF must decisively break the zero line. This could lead to further recovery in the coming weeks, but investors will need to closely monitor their assets to continue their momentum.
Ethereum’s technical indicators also suggest a return to bullish momentum. The relative strength index (RSI) returned to the positive zone above the neutral 50.0 mark after being temporarily immersed in bearish territory. This reversal from the previous downtrend indicates that XLM is restoring its strength.
The RSI shows that investors’ sentiment is improving. A short period of bearishness can be caused by broader market uncertainty and skepticism. However, once RSI returns to the positive range, there is a greater chance of further price increases.
XLM prices are aiming to recover
Stellar’s prices are currently trading at just $0.411, a resistance level of $0.424. Breaking this resistance is important for XLM to recover from recent losses and continue its upward trajectory. A parabolic belt SAR that moves under the candlestick after two weeks indicates that the cave is nearing its end.
If Stellar can support $0.424 and flip, it could pave the way for it to rise above $0.445, possibly reaching $0.470. This allows XLM to recover a significant portion of the losses maintained over the past two weeks and continue the uptrend.
However, if the broader market situation remains bullish and investors’ feelings get negative, the star could face a decline. Failure to maintain support at $0.424 could cause XLM to fall to $0.393, while bearish momentum would push the price to $0.359, negating bullish prospects.
Post Stellar (XLM) prices escape the two-week downtrend as the inflow first rose on Beincrypto.
