Stellar’s (XLM) recent pricing measures have faced downward pressure, raising concerns among investors. After a 97% price surge earlier this month, cryptocurrencies are now on the brink of erasing those profits.
The next few days will rely heavily on broader market movements, which will play a pivotal role in determining Altcoin’s recovery.
Star investors bring back
The Chaikin Money Flow (CMF) indicator shows a sharp decline currently sitting at its three-week low. This suggests that the spill from Stellar is on the rise. This is a negative signal for assets.
The rising spill shows that traders are not confident in Stellar’s short-term outlook and are affecting price measures. CMF is still in the positive zone, but dangerously close to crossing into the negative zone.
When the CMF slips into this zone, it shows that the outflow is outweighing the inflow, further pushing the XLM price down.
Want more token insights like this? Sign up for Editor Harsh Notariya’s daily crypto newsletter.
Despite the bearish trend, there are still some bullish signs in the wider market. The star’s relative strength index (RSI) remains above the neutral level of 50.0, suggesting that bullish momentum has not completely dissipated.
RSI has even noticed a small increase, indicating that the market is interested in some purchase, especially when compared to queues in the wider market. The ongoing momentum in the broader crypto market could help mitigate some of Stellar’s leaks.
XLM prices require push
The XLM price is currently at $0.426 and is about to exceed $0.424, above the support level. The downtrend observed over the past two weeks threatens to reverse the significant profits that took place earlier this month.
With continued spills and the creation of sales pressure, Stellar’s price could drop to a critical support level of $0.393. Losing this support could result in a lower price on XLM, potentially reaching $0.359. This wipes out many of the recent profits and further impacts investor trust.
On the other hand, if the broader market situation remains positive, XLM may find support at $0.393, preventing further declines.
The only way to completely override bearish papers is for XLM to regain $0.445 in support, which seems unlikely to be in the current market situation.
Post Stars Face Increased Spillage – Is XLM Prices at Risk? It first appeared in Beincrypto.
