Since the beginning of this month, Stellar (XLM) has increased by 6%, continuing its remarkable monthly performance. Coingecko reports a 4-day performance for XLM of 5.3%, while charts show an impressive 31.50% rise over the previous 30 days.
This price change is even more unexpected when considered in light of this. Santiment recently took to Twitter to reveal a rather unsettling image for the cryptocurrency community.
“There has been quite a lot of #bloodinthestreets. Unless your portfolio mainly consists of $BNB, $XLM, $QNT, $MKR, $HT, or other scarce positive #altcoins the past 30 days, you’re down. This reflects in the shrinking group of individuals still interested in #cryptocurrency,” Santiment tweeted.
📉 There has been quite a lot of #bloodinthestreets. Unless your portfolio mainly consists of $BNB, $XLM, $QNT, $MKR, $HT, or other scarce positive #altcoins the past 30 days, you’re down. This reflects in the shrinking group of individuals still interested in #cryptocurrency. pic.twitter.com/4t0GQXj9oG
— Santiment (@santimentfeed) October 10, 2022
The question of whether or not XLM can sustain its recent gains is intriguing. In spite of this, a rise of this magnitude is usually followed by a severe reversal as investors’ fears replace their excitement.
Stellar: What The Indicators Suggest
There are a number of signs to keep an eye on. And by “indicators,” it means the CMF, momentum, and bull-bear power. These metrics reveal the direction of the market, and the recent price surge has not yet altered investor opinion about the token.
The money flow index of Chaikin is still heavily bearish, although bulls are testing a breach towards the positive top half. According to the bull-bear power indicator, bears have lost considerable impetus. This is related to the price increase during the past month.
The momentum indicator revealed a modest increase in bullish momentum followed by a slight decline. We may infer that buying enthusiasm for the cryptocurrency is currently high, but purchasers should be warned that a drop may occur in the coming days or weeks.
Slowing Down The Decline
The current rise is supported by the $0.0996 support line, which has halted the crypto market decline from May to June. This has served as the base from which the bulls have leveraged the current rally. Currently, the market is still being supported by the bulls.
As evidenced by the persisting pullbacks in XLM’s price, the current price action indicates that the correction phase is still in its infancy and that bulls continue to rule the market.
As of the time of writing, the token is trading in the green and may rise again following earlier pullbacks and a minor price decline.
XLM market cap at $2.9 billion on the daily chart | Featured image from Steemit, Source: TradingView.com