Stellar (XLM) price faces conflicting technical signals as its downtrend continues to deepen, with the coin dropping 29% over the past 30 days from its highest levels since 2021. A recent death cross formation on December 20 suggests mounting bearish pressure, though a spike in buying activity could signal a potential trend reversal.
The DMI indicates strengthening downward momentum with an ADX above 25, yet the CMF’s dramatic jump to 0.19 shows significant institutional accumulation. This technical divergence sets up a critical phase for XLM, with immediate support at $0.31 and potential resistance at $0.40 if bullish momentum takes hold.
XLM DMI Shows a Strong Bearish Trend
The Directional Movement Index (DMI) for Stellar shows increasing trend strength, with its Average Directional Index (ADX) rising from below 20 to 26.8 in just four days.
ADX measures trend strength regardless of direction, with readings below 20 indicating a weak trend, 20-25 suggesting a developing trend, and values above 25 signaling a strong trend. When ADX rises above 25, it suggests the current trend is gaining momentum and likely to continue.
The current readings of D+ at 13.2 and D- at 21.5, combined with the rising ADX at 26.8, paint a bearish picture for XLM price. Since D- (negative directional indicator) is higher than D+ (positive directional indicator), this confirms the trend’s bearish nature.
The ADX rising above 25 suggests this downward movement is strengthening and could continue, with the significant gap between D- and D+ reinforcing the likelihood of sustained downward price action.
Stellar CMF Jumped In The Last 24 Hours
The Chaikin Money Flow (CMF) for X
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Author: Tiago Amaral
