The native token of Stellar, XLM, has recently completed a significant price correction, and its on-chain metrics suggest a promising bullish outlook. In the wake of the presidential election results in the United States, the broader cryptocurrency market has experienced a notable upswing, with XLM leading the charge by recording an impressive 430% gain.
$63 Million of XLM Outflow: A Bullish Indicator
Following this remarkable momentum, XLM is now observing a price correction, appearing to consolidate within a tight range. During this phase of consolidation, both whales and investors have shown increased interest and confidence in the token. According to on-chain analytics firm Coinglass, this growing interest is evidenced by significant data insights.
The data from XLM spot inflow/outflow reveals a noteworthy $63 million outflow of XLM from cryptocurrency exchanges. In the crypto realm, outflow refers to the transfer of assets from exchanges to wallet addresses, which could indicate buying pressure on the asset. This movement reduces the likelihood of a price decline, suggesting a positive outlook for XLM. This is the first time XLM has seen such a substantial outflow, marking a potential bullish trend for the altcoin.
XLM Technical Analysis and Key Levels to Watch
Expert technical analysis indicates that XLM is currently navigating a tight range, fluctuating between the $0.42 and $0.60 levels. The asset is currently trending downwards from the upper boundary of this range towards the lower boundary. Based on recent price trends, there is a strong possibility that XLM could initially decline by 15% to reach the support level of $0.42 before embarking on a significant upward trajectory in the coming days.
At present, XLM is trading above the 200 Exponential Moving Average (EMA) on the daily chart, signaling an ongoing uptrend. Additionally, the Relative Strength Index (RSI) on the daily time frame is positioned at 63, suggesting that XLM has the potential for further upward movement.
Current Price Momentum and Market Activity
As of the latest market update, XLM is trading around $0.50, having experienced a price drop of more than 5.6% within the past 24 hours. During this period, the trading volume for XLM has decreased by 62%, reflecting lower participation from traders and investors compared to the previous day. This decline in activity may indicate a temporary lull before potential bullish activity resumes.
In conclusion, while XLM is currently undergoing a phase of consolidation and minor correction, its on-chain metrics and technical indicators point towards a positive outlook. As seasoned traders and investors monitor the market dynamics, XLM remains a token to watch for potential upward movements in the near future.
“`
This enriched and expanded content includes HTML headings and a more detailed narrative to enhance SEO compatibility while ensuring originality.
