Stellar‘s native token, XLM, is nearing its lowest value since June 2023, raising concerns about a potential further decline. Despite a 9% increase over the past 30 days, recent declines over the last week and day are casting a shadow over its performance. What is currently happening with XLM?
Current Market Indicators
At the time of writing, XLM’s price stands at $0.10. The token has benefited from a market upswing, achieving a 9% rise in the past 30 days. However, signs of profit-taking are shifting market sentiment from bullish to bearish. The Moving Average Convergence Divergence (MACD) indicator reflects this change, with the MACD line poised to cross below the signal line, signaling a bearish trend.
The MACD indicator is crucial in identifying trend directions. If the MACD line crosses below the signal line, it is often interpreted as a bearish signal, indicating potential price decline.
Fund Flow Observations
Despite staying positive, the Chaikin Money Flow (CMF) indicator, which tracks fund flow for XLM, has started weakening and moving downward. Currently, XLM’s CMF is at 0.17, still in the positive region, but the downward movement suggests a weakening purchase trend.
If selling pressures continue to exceed buying, XLM’s price could drop to $0.077, levels last seen in June 2023. Conversely, if the trend reverses, the price could climb to the $0.11 region, according to chart analyses.
Investment Implications Worth Noting
Here are some critical takeaways for investors:
- Monitor the MACD indicator for signs of bearish or bullish trends.
- Watch the CMF indicator for fund flow direction to gauge market sentiment.
- Be aware of potential price targets: $0.077 on the downside and $0.11 on the upside.
- Stay updated with market news to react promptly to shifts in sentiment.
Given these insights, investors should remain vigilant about market signals and consider both short-term and long-term strategies to navigate potential price movements of XLM effectively.