Stellar (XLM), has increased by 6% since the beginning of October, continuing its extraordinary monthly performance. Coingecko reports a performance of 5.3% for XLM over 4 days. Charts show a staggering 31.50% growth in the last 30 days.
When you consider this, the price rise is all the more surprising. Santiment posted a disturbing image to Twitter recently.
“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.
📉It has been quite the lot. #bloodinthestreets. Your portfolio should not mainly consist of $BNB, $XLM, $QNT, $MKR, $HTOr other rare positives #altcoins the past 30 days, you’re down. It is evident in the decreasing number of individuals who are still interested. #cryptocurrency. pic.twitter.com/4t0GQXj9oG
— Santiment (@santimentfeed) October 10, 2022
Interesting questions surround whether XLM is able to maintain its gains. 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 Say
You should be aware of a few indicators. And by “indicators,” it means the CMF, momentum, and bull-bear power. These indicators show the direction of market and investors’ opinion on the token have not changed despite the price rise.
Chart by TradingView
Chaikin’s money flow index is still heavily bearish. However, bulls may be able to break through the top-half of their positive range. The bull-bear power indicator shows that bears are losing significant impetus. This could be due to an increase in the prices over the last month.
A slight increase in bullishness was followed by a small decline. Although we can infer that there is a lot of enthusiasm about cryptocurrency, buyers should know that there may be a decline in price in the days and weeks ahead.
Slowing down the Decline
Supported by the $0.0996 resistance line, the current rally has been slowed down by the cryptocurrency market’s decline between May and June. It has been the foundation from which bulls have leveraged their 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.
The token was trading green at the time of writing. This could be due to earlier pullbacks, and possibly a small price fall.
XLM Market Cap at $2.9 Billion on Daily Chart | Featured image from Steemit, Source: TradingView.com