Stellar’s price action has shown signs of recovery after a two-week downtrend as the altcoin saw a drop in value.
However, recent developments show the asset bouncing back, thanks to increased investment activity. Stellar is now attempting to turn the tide and recover lost ground.
Stellar Investors Are Jumping Back In
The Chaikin Money Flow (CMF) indicator, which tracks the flow of capital into an asset, is showing an uptick for Stellar. This suggests that XLM is witnessing increased inflows, which could be a positive sign for the altcoin. However, while the CMF is rising, it still remains below the zero line, indicating that the inflows aren’t strong enough to trigger a sustained upward trend yet.
For the inflows to continue and have a lasting impact on XLM’s price, the CMF will need to break decisively above the zero line. While this could lead to further recovery in the coming weeks, investors will need to monitor the asset closely to ensure the momentum continues to build.
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Ethereum’s technical indicators also suggest a return to bullish momentum. The Relative Strength Index (RSI) has moved back into the positive zone, above the neutral 50.0 mark, after briefly dipping into bearish territory. This reversal from the prior downtrend shows that XLM is regaining strength.
The RSI indicates that investor sentiment is improving. The brief period of bearishness was likely caused by broader market uncertainty and skepticism. However, with the RSI back in the positive range, the likelihood of further price increases has increased.
XLM Price Aims At Recovery
Stellar’s price is currently trading at $0.411, just under the resistance level of $0.424. Breaking this resistance will be key for XLM to recover the recent losses and continue its upward trajectory. The Parabolic SAR moving below the candlesticks after two weeks signals that the downtrend is coming to an end.
If Stellar can flip $0.424 into support, it could pave the way for a rise past $0.445 and possibly reach $0.470. This would allow XLM to recover a significant portion of the losses it sustained over the past two weeks and continue its uptrend.
However, if broader market conditions fail to remain bullish and investor sentiment turns negative, Stellar could face a decline. A failure to maintain support at $0.424 could lead XLM to drop to $0.393, with further bearish momentum pushing the price to $0.359, invalidating the bullish outlook.
source : https://beincrypto.com