- XLM crypto’s golden cross sparked a 34% weekly surge, outperforming major altcoins like SHIB.
- Indicators like CMF and DMI revealed weakening momentum, signaling possible price consolidation ahead.
Over the last week, I’ve seen Stellar [XLM] soaring an impressive 34%, and I can’t help but feel excited about it! The reason behind this surge appears to be the emergence of a golden cross, a technical pattern that suggests continued upward momentum might be on the horizon.
Nevertheless, although the market’s movement seems optimistic at first glance, some crucial signs suggest a possible decline in momentum.
XLM Crypto: DMI reveals waning buyer strength
The Daily Moving Average Indicator (DMI) for Stellar suggests a potential change in trend momentum. The Plus Directional Indicator (+DI) has dropped from 40.3 to 25, signaling a decrease in the strength of the bullish influence.
Currently, the Dollar Index (DI) has climbed from 7.9 to 14.6, indicating a gradual shift in power towards sellers. However, the ADX value remains over 25, implying that Stellar Lumens (XLM) continues to be in an upward trend.
Nevertheless, the decrease in the ADX from 52.6 to 40.1 over the last two days indicates a weakening trend momentum. If selling pressure persists and buying activity decreases, the current upward trend might lose its momentum, potentially causing a pause or even a reversal in prices.
CMF signals increasing outflows
The market sentiment for Stellar, as indicated by the Chaikin Money Flow (CMF), appears troubling. Presently, the CMF has significantly dropped compared to its highest annual mark of 0.41, which was reached on the 1st of January.
This dip into the red area indicates a shift from heavy influxes to overall withdrawals, suggesting increased selling force at play.
Two days back, my analysis showed the Crypto Moving Force (CMF) was at 0.17, indicating a swift erosion of investor confidence in XLM. If this negative CMF continues, it might intensify the downward pressure on XLM’s price, potentially hindering its recent positive trend.
Instead, a return to positive values could signal renewed enthusiasm, offering the necessary backing for the price to maintain stability or mount another surge.
Stellar’s rise: Can XLM flip Shiba Inu in market cap?
Approaching Shiba Inu (SHIB), Stellar (XLM) trails by approximately $243 million in terms of total market valuation, suggesting it’s nearly evenly matched.
Compared to XLM, Shiba Inu (SHIB) has a greater number of coins in circulation and a devoted community, but its market growth has decelerated, registering a relatively small increase of 13.65% over the past month compared to XLM’s more substantial rise by approximately 38.73%.
Limiting the usefulness of a meme coin could potentially slow down its continuous expansion. In contrast, Ripple (XLM) stands out due to its real-world applications in international transactions and its role in driving blockchain advancements.
Read Stellar’s [XLM] Price Prediction 2025–2026
Chart analysis indicates that Stellar (XLM) is holding steady above the $0.45 mark following a strong surge, with underlying support at $0.44 and resistance approaching $0.47. Should the positive momentum persist, XLM could aim for $0.50 and even surpass Shiba Inu (SHIB).
However, a bearish correction may test support near $0.42.
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2025-01-07 16:07