Stellar (XLM) recently broke out of a months-long downtrend, generating optimism among the investor community.
This recovery has brought confidence back to the market, allowing this altcoin the opportunity to continue its uptrend and aim for higher price levels.
Stellar Investors Are Wondering
Over the past few weeks, Stellar’s funding rate has remained positive. This shows that traders still maintain an optimistic view on this asset despite the previous decline. This optimism resonates with XLM’s recent price recovery.
Maintaining a positive funding ratio during the price correction underscores investor confidence in Stellar’s recovery potential. This positive trend has contributed to the asset’s recovery, creating a foundation for a sustainable short-term uptrend.
From a macro perspective, Stellar’s Chaikin Money Flow (CMF) index fluctuates around zero, reflecting weak cash flow. This represents investor uncertainty, which could hinder the asset’s recovery if not improved. If cash flow does not increase significantly, Stellar’s price could be susceptible to a correction.
Investor uncertainty continues to impact Stellar’s market performance. Stronger cash flows are needed to stabilize assets and support the uptrend. If this does not happen, the cryptocurrency may have difficulty maintaining its current recovery trajectory.
XLM Price Prediction: Recovery Continues
Stellar has recovered 30% since the beginning of the year, with a current price of $0.429. The altcoin consolidated support at $0.416, strengthening its position and showing the potential to move higher.
To fully recover from December losses, Stellar needs to reach $0.583. Achieving this price will require strong support from the market and renewed confidence from investors. This recovery will confirm the optimistic view and strengthen XLM’s long-term growth prospects.
However, if overall market conditions become bearish, Stellar’s price could fall below the critical support level of $0.416. This drop could push the asset down to $0.355, derailing the bullish view and delaying any further recovery attempts. This scenario highlights the importance of continued investor confidence and market support to Stellar’s upward momentum.