Could Stellar (XLM), which has been soaring in recent days, suffer from selling pressure?
Stellar (XLM) price is experiencing a deep downtrend, down 29% from the peak reached in 2021. While increasing selling pressure after December 20 is troubling, some recent data points to a rebound.
The Directional Movement Index (DMI) indicator is used to measure the strength of a particular trend. XLMLooking at , the indicator is currently positive. The Chaikin Money Flow (CMF) indicator reflects corporate purchases in equity. According to the CMF, the increase reached the level of 0.19. XLM This shows that corporate purchases are increasing.

The bear trend may continue in the popular altcoin.
Stellar’s Directional Movement Index (DMI) is notable for its bullish trend strength. The Average Directional Index (ADX) rose from below 20 to 26.8 in just four days. The ADX indicator measures the strength of a trend. ADX below 20 indicates a weak trend, between 20-25 indicates an uptrend, and above 25 indicates a strong trend.
According to the current DMI data, the ADX is at the level of 26.8. These figures show that the downtrend is strengthening and may continue. The fact that the D- value is higher than the D+ value confirms the current falling trend.
ADX above 25 emphasizes that the downward movement is gaining momentum and is likely to continue.
Levels to consider for XLM
The $0.31 support level is critical for XLM. If this support is broken, the price can fall to $0.25. On the other hand, the Chaikin Money Flow (CMF) data indicates a possible trend reversal and an upward move. If Stellar can use this positive rally and initiate an uptrend, the price may test the $0.40 resistance first. If it holds above the $0.40 level, the price could rise to $0.47, which is 34% higher than the current level.

This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.