Stellar (XLM) is on a remarkable upward streak, gaining over 20% in just 24 hours and 124.86% in the past week. Its price now stands at $0.30, the highest since December 2021. With bullish momentum fueling this rise, traders are eyeing whether XLM can maintain its trajectory or face a pullback.
RSI Signals Overbought Conditions
The Relative Strength Index (RSI) for Stellar has surged to 74.10, moving sharply into overbought territory. This indicates strong buying pressure driving the current rally.
RSI values above 70 typically signal overbought conditions, hinting that a correction might be due. However, history shows that Stellar’s RSI can remain elevated for several days, allowing prices to climb further before reversing.
CMF Turns Positive but Remains Weak
Stellar’s Chaikin Money Flow (CMF) has moved to 0.06, up from -0.10 just a day ago. This shift suggests capital inflows are returning to the market, though the momentum isn’t as strong as in previous rallies.
The CMF measures money flow volume, with positive values indicating bullish sentiment. For XLM, the CMF’s recovery is a good sign but remains well below mid-November highs, where it peaked at 0.40.
Can Stellar Hit a $10 Billion Market Cap?
To reach a $10 billion market cap, Stellar’s price would need to climb by 15.7% from its current level. This goal hinges on sustained bullish momentum and strong investor interest.
However, with the relatively weak CMF, the rally may struggle to sustain itself. If the trend reverses, XLM could test support at $0.14. A failure here could lead to a deeper correction, with prices dropping to $0.0994—67% below recent highs.
Bullish or Bearish?
- Bullish:Â Strong RSI and rising capital inflows suggest room for further gains, possibly pushing XLM closer to $10 billion market cap.
- Bearish:Â Weak CMF hints at limited momentum. A drop below key support could lead to significant corrections.
