Stellar's Rally Slows: What's Next for XLM?

Stellar (XLM) has seen a remarkable surge recently, climbing over 400% in just 30 days, reaching its highest value in over two years. However, technical indicators now suggest that the rally might be slowing, pointing to possible consolidation in the near term. Despite this, strong market interest and optimistic sentiment could still support further gains.

The Average Directional Index (ADX), which measures the strength of trends, currently signals a weakening momentum. Its recent drop from a much higher value to the low 20s reflects this shift. While the uptrend remains intact, a stronger ADX would be required to reignite the momentum. At the same time, the difference between buying and selling pressure remains in favor of buyers, which still indicates an overall bullish bias.

Another indicator, the Chaikin Money Flow (CMF), has turned negative, suggesting more capital is flowing out of XLM than coming in. The CMF has remained below zero for several days now, signaling moderate selling pressure that could limit further price growth. However, it is not yet at extreme levels, leaving room for a potential recovery in market sentiment.

If buying momentum strengthens again, XLM could challenge new resistance levels, continuing its upward trajectory. On the other hand, failure to sustain the current trend might lead to a correction toward key support zones. This level will be crucial for maintaining the positive outlook in the medium term. A breach below it could indicate deeper corrections and further slow the rally.

Stellar’s recent performance highlights its ability to attract strong market attention, but sustaining such growth will depend on renewed momentum and favorable market conditions. For now, the future trajectory remains uncertain, with both bullish and bearish scenarios still in play. Investors are watching closely for signs of whether the upward trend can resume or if a period of consolidation lies ahead.