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- After reducing exposure post-surge, whales are reentering the XLM market as its price recovers.
- The recent increases in Stellar trading volume and renewed whale interest suggest potential upward momentum in the near term.
Stellar (XLM) price recently fell by 8% in a week, making it the top loser among cryptocurrencies listed on CoinMarketCap. This slump came after the token’s remarkable 173% surge the previous week. Despite the recent drop, XLM’s price managed to hold support at $0.40, a level that previously acted as a significant resistance. Moreover, Stellar Price has seen a strong bounce back today, which may set the stage for further gains.
Stellar Price Action and Technical Indicators
Analyzing the weekly chart, the XLM price has kept the level at $0.40 support, which could just push the cryptocurrency towards its high peak in 2021 at $0.79, per the CNF report. The CMF, a measure tracking the inflows of money into the system, recorded the greatest increase yet.
However, the CMF remains level on the 12-hr chart since November 20, suggesting inflow may be flattening off. This lack of momentum may bring the possibility of an immediate rally down to a lower level.
Nonetheless, Stellar’s trading volume has rebounded drastically, surging by a whopping $124.30% to $4.15 billion at press time. This reinforces the probability of XLM holding strong above the $0.40 support level while accumulating liquidity. Thus, for now, the price is likely to trade in the range of $0.40 and $0.62 until a significant breakout in either direction takes place.
XLM Whale Activity And Market Impact
Last week, large holders, or whales, had been cutting back on their exposure to XLM following the previous week’s gains. This trend was explicitly seen in the Whale vs. Retail Delta data, which has gone negative. This suggests that there is a pullback on longs. This type of action by large market players historically tends to lead to price consolidation or correction.
Furthermore, the Average Directional Index (ADX), an indicator showing the strength of the trend, also fell sharply from 80 to 21. If the ADX falls below 20, it would reveal a dramatically deteriorated trend, discouraging swing traders from opening new positions.
However, since the Stellar price has erased its recent losses with a significant rebound lately, the sentiment has shifted. Also, whales are reentering the market with the latest resurgence in XLM value.
Short-Term Outlook For XLM Price
Current metrics indicate relief from the phase of consolidation for the XLM price. A resurgence in whale activity coupled with higher trading volume suggests major market moves to generate a substantial price movement for the XLM token, reported CNF. Thus, all eyes will remain on the crucial support at $0.40 as the market continues to remain vigilant.
Currently, the Stellar price is holding steady above the $0.51 mark, which is a major achievement. As of press time, the XLM price gained 2.04% to $0.5155 on Monday, December 2. The latest surge could be in tandem with the XRP price as well since rumors around a potential partnership between Stellar and Ripple have gained momentum.
