Reasons for XLM Price Increase: Why is it Trending and Bullish Now?

Bittime - Stellar (XLM) has again attracted attention in the cryptocurrency market after experiencing a significant price spike, although it experienced a decline afterwards. After the price jumped 173% in a week, XLM saw a decline of 8%. 

However, this decline does not reduce hopes that XLM still has the potential to continue being bullish. Let's discuss in more depth the reasons why the price of XLM rose and what could influence its movement in the future.

XLM Price Drop After Increase

An 8% price drop after a big spike is common in the highly volatile crypto market. Typically, this is called a consolidation phase, where the price tries to find a balance point before resuming an uptrend or downtrend. 

Despite the decline, XLM managed to maintain an important support level at $0.40. This level is very crucial because if the price remains stable above this level, there is a possibility that XLM could retest the 2021 high around $0.79.

Read Also:  Check out the BirdTon Daily Combo Answers December 3 Here!

Promising Inflow: Chaikin Money Flow (CMF)

One important indicator that shows the potential for an increase in the price of XLM is Chaikin Money Flow (CMF). CMF measures the flow of funds into and out of an asset, and currently shows a sizable flow of funds into XLM. 

This means that despite the price drop, interest in XLM remains high. If the price can remain above the $0.40 level, these inflows could support the continuation of the rally going forward. 

Although CMF shows this potential, the 12-hour chart shows stagnation in fund flows since mid-November, which could be a sign that XLM's bullish momentum is starting to slow down. This could see XLM move in the $0.40 to $0.62 price range for some time before resuming a major rally.

Read Also:  Check out the City Holder Daily Combo Answers 3 December 2024

Whale Activity: The Influence of Big Players

Whales or large investors play a very big role in XLM price movements. After a significant price increase, many whales decided to take profits and sold most of their holdings. This causes prices to fall and slows the rate of increase. Data Whales vs. Whales 

Retail Delta shows that whales tend to retreat from the market, leading to price stagnation. However, if whales re-enter the market, they could provide a big boost for XLM to continue its bullish trend. Their involvement is very important, because they can create liquidity that supports larger price movements.

XLM Trend Strength: Declining ADX

One indicator that shows a weakening in the XLM trend is the Average Directional Index (ADX). ADX measures the strength of the trend, and currently the ADX number dropped from almost 80 to 21. This decline indicates that the XLM bullish trend is starting to lose strength. If ADX continues to decline, it is likely that XLM will face a longer consolidation, and a major rally may require the support of external factors.

Conclusion

Overall, even though XLM is in a consolidation phase following the price surge, the potential to continue its rally to 2021 highs is still there. The support level at $0.40 is an important key for the continuation of this trend. The flow of funds is still quite large, despite stagnation, as well as the possibility of a return to whale activity, indicating that XLM can still continue to rise. 

However, with the strength of the trend weakening and the influence of whales waning, it is likely that XLM will move in a consolidation range between $0.40 and $0.62 for a while. For those of you who are monitoring XLM, this could be an opportunity to see further movement and wait for the right investment opportunity.

FAQ Stellar (XLM)

What is Stellar (XLM)?

Stellar (XLM) is a blockchain that enables fast, low-cost cross-border transactions, using XLM tokens to facilitate payments.

What makes XLM unique?

XLM focuses on efficient international transactions with low fees and high speed, and uses decentralized consensus.
 

Is XLM worth the investment?

XLM has the potential to be a long-term investment, especially if blockchain adoption for global payments continues to grow.

 

How to Buy Crypto di Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.

Additionally, visit Bittime Blog to get various interesting updates and educational information about the world of crypto. Find trusted articles about Web3, blockchain technology, and digital asset investment tips designed to enrich your knowledge in the world of crypto.

Reference

MikeT, The Currency Analytics, accessed December 3, 2024.

FXStreet, Media FXStreet, accessed December 3, 2024.

Author: MF