Stellar (XLM) experienced a significant drop of 8% after a remarkable 173% surge, landing at the top of the losers’ list on CoinMarketCap. This pullback could potentially serve as a healthy retracement before another upward movement, but do the current indicators support such a scenario?<\/p>\n
Analyzing the weekly chart, XLM managed to hold its ground at a crucial support level of $0.4, boosting the likelihood of the altcoin targeting its previous highs of $0.79 or even surpassing them.<\/p>\n
The uptrend is further reinforced by the increase in the Chaikin Money Flow (CMF), indicating significant capital inflows and potentially paving the way for further momentum above $0.4.<\/p>\n
On the other hand, indicators on the 12-hour chart suggest that the continuation of the uptrend might face some delay. The stagnation of the CMF since November 20 indicates a pause in the inflows, potentially dampening the chances of a prolonged rally.<\/p>\n
The declining trading volume is another concerning factor that might lead XLM to retest the support level and liquidity beneath $0.4.<\/p>\n
For now, XLM could trade within the range of $0.40 to $0.62 before any breakout occurs, whether it leans towards the upside or downside.<\/p>\n
The repositioning of whales in the XLM market aligns with the projected price range. Following profit-taking activities in the previous week, whales have started exiting long positions, as evidenced by the negative turn in the Whale vs. Retail Delta.<\/p>\n
Historically, the de-risking behavior of major players often triggers price consolidation or retracements.<\/p>\n
Furthermore, the Average Directional Index (ADX), utilized to measure a token’s price trend potency, plummeted from nearly 80 to 21.<\/p>\n
If the ADX drops below 20, it would indicate a weakened trend, posing a risk for any trading activities, particularly for swing traders.<\/p>\n
In essence, although the continuation of XLM’s uptrend seemed probable, the withdrawal of whales from active positions could postpone such a scenario in the near term.<\/p>\n
Disclaimer: The opinions expressed in this article do not constitute financial or investment advice and solely represent the views of the author.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"
Stellar (XLM) experienced a significant drop of 8% after a remarkable 173% surge, landing at the top of the losers’ list on CoinMarketCap. This pullback could potentially serve as a healthy retracement before another upward movement, but do the current indicators support such a scenario? Future Prospects for XLM Analyzing the weekly chart, XLM managed<\/p>\n","protected":false},"author":1,"featured_media":33253,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-33252","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/33252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/comments?post=33252"}],"version-history":[{"count":2,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/33252\/revisions"}],"predecessor-version":[{"id":33257,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/posts\/33252\/revisions\/33257"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media\/33253"}],"wp:attachment":[{"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/media?parent=33252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/categories?post=33252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/btcacademy.online\/crypto\/wp-json\/wp\/v2\/tags?post=33252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}