Stellar (XLM) Surges 10% as Buyers Regain Control

·

Stellar (XLM) has climbed over 10% in the past 24 hours, marking a strong recovery attempt after a 15% correction during the previous month. With its market capitalization now at $8.6 billion, XLM is at a pivotal juncture. While momentum appears to be shifting in favor of bulls, key technical levels will determine whether this rally can evolve into a sustained uptrend or if consolidation lies ahead.

This article dives deep into the latest technical indicators, price dynamics, and potential future scenarios for Stellar, offering a data-driven outlook for traders and investors monitoring XLM’s trajectory.

Technical Indicators Signal Shifting Momentum

Recent movements in key technical indicators suggest that buying pressure is building and that bears may be losing their grip on the market.

DMI Analysis: Bullish Shift in Market Sentiment

The Average Directional Index (ADX), part of the Directional Movement Index (DMI), has declined from 35.6 to 28.7 over the past two days. While still above the 25 threshold—typically signaling a strong trend—this drop indicates weakening trend strength. Notably, a declining ADX during a price rebound often reflects a transition phase, where directional certainty is being reevaluated by the market.

However, the real story lies in the +DI and -DI lines:

This dramatic crossover suggests a significant shift in control from sellers to buyers. When +DI rises above -DI, it traditionally signals bullish momentum gaining ground. For Stellar, this could mark the beginning of a trend reversal—if confirmed by further price action.

👉 Discover how real-time market signals can help you spot trend reversals early.

That said, for the bullish trend to solidify, the ADX must stabilize and begin rising again. A continued decline in ADX would imply that despite the price increase, conviction remains low—potentially leading to sideways movement before the next decisive breakout.

CMF Surge Confirms Growing Buying Pressure

Another powerful indicator reinforcing the bullish case is the Chaikin Money Flow (CMF). Over the past three days, XLM’s CMF has rebounded from -0.14 to 0.13, briefly touching 0.18 before a minor pullback.

CMF combines price and volume to assess whether money is flowing into (accumulation) or out of (distribution) an asset. The general interpretation is:

At 0.13, CMF confirms that institutional and retail investors are actively buying XLM. This influx of capital aligns with the recent price surge and supports the narrative of renewed market confidence.

However, the slight dip from the 0.18 peak may indicate short-term profit-taking by early movers. If CMF holds above zero and climbs further, it will validate sustained demand. Conversely, a return below zero could warn of fading momentum and a potential reversal.

Price Outlook: Can XLM Break Past $0.35?

Despite the positive technical developments, Stellar’s short-term moving averages still reflect a bearish structure.

EMA Configuration: Early Signs of Reversal

Currently, short-term EMAs (e.g., 9-day and 21-day) remain below longer-term ones (50-day and 200-day), which is classically bearish. However, the recent upward inflection in short-term EMAs suggests that downward momentum is slowing.

If buying pressure continues, XLM could test resistance at $0.309**—a critical psychological and technical level. A confirmed breakout above this zone could open the path toward **$0.349, followed by $0.375 in a stronger bullish scenario.

Key Resistance Levels

On the flip side, failure to hold gains could trigger renewed selling pressure.

Support Zones to Watch

A breakdown below $0.273 would invalidate the current recovery and could lead to further losses, especially if broader market sentiment turns risk-off.

👉 Stay ahead of resistance breaks with advanced charting tools and real-time alerts.

Core Keywords for SEO Optimization

To align with search intent and improve visibility, the following core keywords have been naturally integrated throughout this analysis:

These terms reflect common queries from traders seeking actionable insights on XLM’s performance and future potential.

Frequently Asked Questions (FAQ)

Q: What caused Stellar (XLM) to surge 10% recently?
A: The surge was driven by increased buying pressure, reflected in rising Chaikin Money Flow and a bullish crossover in the DMI indicators. Investor accumulation over the past few days has supported this rebound after a prior correction.

Q: Is Stellar showing signs of a trend reversal?
A: Yes—while EMAs still show a bearish structure, key indicators like +DI surpassing -DI and CMF turning positive suggest early-stage bullish momentum. A sustained move above $0.309 would strengthen this reversal signal.

Q: What is the next major resistance level for XLM?
A: The next immediate resistance is at $0.309. A breakout here could lead to a test of $0.349, with $0.375 as a longer-term target if momentum builds.

Q: What happens if XLM fails to hold above current levels?
A: Failure to maintain gains could lead to a drop toward $0.273—the first major support. A break below that level may extend losses toward $0.252 or even $0.226 in a worst-case scenario.

Q: How reliable is CMF in predicting XLM’s price movement?
A: CMF is highly effective for detecting capital inflows and outflows. With XLM’s CMF now positive at 0.13, it confirms accumulation is occurring—though traders should watch for sustained readings above zero to confirm lasting demand.

Q: Can Stellar reach $0.35 in March?
A: It’s possible if bullish momentum continues and resistance at $0.309 is cleared decisively. However, given current EMA alignment and ADX trends, consolidation remains a likely outcome unless volume and sentiment strengthen further.

👉 Access live XLM charts and advanced technical tools to track these levels in real time.

Final Thoughts

Stellar’s recent 10% rally reflects renewed investor interest and shifting market dynamics. With DMI and CMF both signaling growing accumulation, bulls are regaining control—but structural bearishness remains embedded in the EMA framework.

The coming days will be critical: a confirmed breakout above $0.309 could pave the way toward $0.35 and beyond, while failure may lead to consolidation or another leg down.

For traders, monitoring CMF stability, ADX direction, and volume patterns will be essential in determining whether this rally has staying power—or is merely a countertrend bounce.

As always, conduct thorough research and consider risk management strategies before entering any position in volatile crypto markets.