XLM Bulls Face Critical Test: Will Stellar Break Out or Break Down?
Recently, there was a significant increase in Stellar (XLM), which raised the price of the altcoin. Nonetheless, there has been a significant amount of price consolidation in the last week. The altcoin’s inability to overcome the critical $0.50 resistance level is giving rise to further indications of a possible reversal. However, the price of XLM is currently trading at $0.4679, up 1.45% over the last day.
Will Stellar’s Golden Cross Outshine the Growing Bearish Signals?
The downturn for XLM is starting to pick up steam, according to the Parabolic SAR, which is above the candlesticks. It will be challenging for the altcoin to break through the $0.50 resistance, according to this technical indication, which indicates that bearish momentum is gaining ground.
The current active golden cross, however, has the ability to offset the negative impacts of the decline. A bullish indication that usually denotes long-term rising movement is the golden cross. It might offer the support required to halt the price slide of XLM in spite of the recent bearish signs.
CMF Remains Positive but Declining Signal Weakening Inflows
According to the Chaikin Money Flow (CMF) indicator, the overall macro momentum for XLM is displaying conflicting indications. Strong inflows and bullish sentiment were indicated by the CMF’s eight-month high last week.
But since then, the indicator has started to fall, indicating that the buying pressure is lessening. The fact that the CMF is still over the zero line in spite of this shows that inflows are still exceeding outflows.
Outflows would be in control if the CMF fell below the zero line, which would be bad news for XLM. The price would probably experience further downward pressure if the CMF continued to decrease, which would support the altcoin’s pessimistic view.
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