Stellar (XLM) Faces Resistance Near $0.50 Amid Mixed Momentum and Potential Downside Risks

• Stellar Lumens (XLM) faces a critical test as it struggles to surpass the $0.50 resistance level amid increasing outflows and weakening momentum indicators.

• The Chaikin Money Flow (CMF) indicator shows declining buying pressure, yet remains above zero, indicating that inflows still slightly outweigh outflows for now.

• According to COINOTAG analysis, if XLM fails to break through $0.50 and outflows persist, the price may retest support levels at $0.43, $0.41, or potentially drop to $0.35.

Stellar Lumens (XLM) price drops 7% as it fails to break $0.50 resistance; weakening momentum and outflows may push it toward $0.35 support levels.

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Stellar Investors Are Pulling Back Amid Bearish Momentum

The recent technical indicators for Stellar Lumens reveal growing bearish sentiment. The Parabolic SAR positioned above the candlesticks signals a strengthening downtrend, making it challenging for XLM to overcome the pivotal $0.50 resistance. This suggests that sellers are gaining control in the short term.

Nevertheless, the presence of an active Golden Cross offers a counterbalance. This bullish signal, formed when a short-term moving average crosses above a long-term moving average, typically forecasts sustained upward momentum. It may provide critical support to temper the current decline and prevent a sharper drop.

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XLM Golden Cross. Source: TradingView

Overall, the mixed technical signals reflect a market at a crossroads, where investor confidence is wavering but not yet decisively bearish.

Chaikin Money Flow Signals Waning Buying Pressure

The Chaikin Money Flow (CMF) indicator, which measures buying and selling pressure over a specified period, recently peaked at an eight-month high, signaling strong inflows and bullish sentiment. However, the CMF has started to decline, indicating that the buying momentum is fading.

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Despite this downturn, the CMF remains above zero, meaning inflows are still marginally exceeding outflows. Should the CMF fall below zero, it would confirm a shift toward dominant selling pressure, likely exacerbating downward price movement for XLM.

XLM CMF. Source: TradingView

Traders should monitor this indicator closely, as a sustained drop below zero could signal a more pronounced bearish phase.

XLM Price Can Bounce Back with Renewed Inflows

After a 7% decline in the past 24 hours, XLM is trading near $0.45, consolidating just below the $0.50 resistance. This consolidation phase reflects uncertainty among investors as the altcoin struggles to regain upward momentum.

If selling pressure continues to dominate, XLM risks breaking below key support levels at $0.43 and $0.41, which could open the door to a deeper correction toward $0.35. Such a move would represent a significant setback for the altcoin’s recent rally.

XLM Price Analysis. Source: TradingView

Conversely, a recovery in inflows could stabilize the price and enable XLM to challenge the $0.50 resistance once again. Successfully breaching this level would invalidate the current bearish outlook and could propel the price toward $0.56, signaling a potential trend reversal.

Conclusion

Stellar Lumens is currently navigating a critical juncture, with technical indicators presenting a mixed picture. While bearish momentum is gaining traction, the presence of bullish signals like the Golden Cross and positive CMF readings suggest that a reversal remains possible. Investors should watch key resistance and support levels closely, as the next moves will likely determine XLM’s short-term trajectory. Maintaining vigilance on inflows and outflows will be essential for anticipating potential price rebounds or further declines.