Stellar (XLM) price has increased more than 6% in the past 24 hours as it attempts to regain its $11 billion market capitalization. Technical indicators such as the DMI hint at an uptrend that may be forming, with rising ADX and dominance of +DI pointing to strengthening buying momentum.
Meanwhile, the Chaikin Money Flow Index (CMF) turned positive showing improving capital flows, signaling a possible change in market sentiment. XLM is currently trading between key levels, with potential for a rise to $0.47 if bullish momentum builds or a retest of support at $0.31 if the uptrend fails.
Stellar’s DMI suggests an uptrend could emerge soon
XLM’s DMI chart shows ADX at 19.5, up from below 15 just three days ago, signaling increasing trend strength. +DI (Directional Index) jumped from 10 to 25.6 in just one day, while -DI dropped to 13.9, indicating a significant change in momentum.
This crossover, with +DI crossing -DI, suggests that buying pressure is now dominating selling pressure, hinting at the early stages of a potential uptrend.
The Average Directional Strength Index (ADX) evaluates the strength of a trend on a scale of 0 to 100, with values above 25 indicating a strong trend and below 20 indicating a weak or no momentum trend . Although Stellar’s ADX at 19.5 still reflects relatively weak trend strength, its rise suggests that the trend is gaining momentum.
Combined with the strong rise in +DI, this configuration indicates that XLM price is making progress in reversing the recent downtrend. If ADX continues to rise above 20 and +DI continues to dominate -DI, XLM could see further upward movement, signaling a possible transition to a sustained uptrend.
XLM’s CMF is currently Positive
XLM’s Chaikin Money Flow (CMF) Index is currently at 0.02, recovering after remaining negative from December 25 to December 31. This transition into positive territory shows that buying pressure is starting to exceed through selling pressure, even to a small extent.
The recent rise in CMF reflects improving capital flows into XLM, signals a gradual return of investor confidence, and is an early hint of bullish momentum building in the market.
CMF measures the flow of money into and out of an asset based on price and volume over a specific period of time. Values above zero indicate net buying pressure, while values below zero indicate net selling pressure. While Stellar’s CMF at 0.02 indicates a small positive deviation, it is a notable recovery from -0.20 just two days ago.
This sharp improvement suggests a shift in market sentiment, even if momentum is still developing. If CMF continues to rise, it could indicate increased accumulation and support for near-term upside.
XLM Price Prediction: Could Stellar Rise 32% in the Next Few Days?
XLM’s EMAs currently hold a bearish profile, with short-term lines below long-term ones, reflecting outstanding bearish momentum. However, the short-term EMAs are starting to rise, and if they cross the long-term EMAs, a golden cross will form — a well-known bullish indicator that can signal a potential trend reversal. power.
If this bullish momentum continues, Stellar price could test the resistance at $0.406, which, if broken, could pave the way for a move to the next resistance at $0.47.
On the downside, if the uptrend fails to materialize and the downtrend strengthens again, XLM price could retest the nearest support at $0.31. Failure to hold this level could open the door for a move lower, with the next support at $0.25 likely to materialize.
These key support and resistance levels will determine XLM’s near-term volatility, with the EMA configuration providing important information on whether bullish momentum can fully take over or bearish pressure Price will continue.
