Stellar (XLM)'s price movement showed signs of recovery after a two-week decline.
However, the recent increase demonstrates that the asset is rebounding due to increased investment activity. Stellar is now attempting to change its trend and recover its lost support base.
Stellar Investors Jump Back In
The Chaikin Money Flow (CMF) indicator, which tracks capital flows into assets, shows an upward trend for Stellar. This suggests that XLM is experiencing increased inflows, which could be a positive signal for altcoins. However, while the CMF is rising, it remains below the zero line, indicating that inflows are not yet strong enough to trigger a sustained upward trend.
For inflows to continue and have a sustained impact on XLM's price, the CMF must decisively break above the zero line. This could lead to further recovery in the coming weeks, but investors should closely monitor the asset to confirm if momentum continues to build.
Ethereum's technical indicators also suggest a return to bullish momentum. The Relative Strength Index (RSI) briefly dipped into the bearish area before moving back to the positive zone above the neutral 50.0 mark. This reversal from the previous downtrend shows that XLM is regaining strength.
The RSI indicates that investor sentiment is improving. The short-term weakness was likely caused by broader market uncertainty and skepticism. However, with the RSI returning to a positive range, the potential for further price increases has increased.
XLM Price Recovery Target
Stellar's price is currently trading at $0.411, just below the resistance level of $0.424. Breaking through this resistance is crucial for XLM to recover recent losses and continue its upward trajectory. The parabolic SAR moving below the candlestick after two weeks signals that the downtrend is coming to an end.
If Stellar can convert $0.424 into support, it could pave the way to reach $0.445 and potentially $0.470. This would allow XLM to recover a significant portion of its losses over the past two weeks and continue its upward momentum.
However, if the broader market conditions fail to maintain strength and investor sentiment turns negative, Stellar could decline. If it fails to maintain support at $0.424, XLM could drop to $0.393, and additional bearish momentum could push the price to $0.359, invalidating the bullish outlook.
