Stellar (XLM) Has Surged More Than 10%

Stellar (XLM) has surged more than 10% in the last 24 hours, attempting to recover from a 15% correction over the past month.

Stellar (CRYPTO: XLM) price registered a 10.6% gain in the 24 hours leading up to Wednesday, 15 March. The token’s trend remains at an important juncture as XLM attempts to recover from a 15% correction over the past month.

What Happened: Stellar’s price has encountered a key resistance zone, encountered previously on 10 March. A breakout above this level could propel XLM toward the next resistance at $0.349, which might spark even stronger buying pressure.

However, if sellers return and stall the recovery, leading to a price decline from the current level, the next support would be at $0.273, a critical zone that previously triggered a price rebound.

Stellar’s DMI chart shows that the Average Directional Index (ADX) has dropped to 28.7, decreasing from 35.6 two days ago.

Usually, a decreasing ADX, even with the price moving in a certain direction, indicates that the strength of the trend is diminishing.

In this case, the decline from 35.6 to 28.7 suggests that Stellar’s bearish trend is weakening, presenting an opportunity for a possible shift in momentum.

At the same time, there has been a major change in the Directional Indicators, with +DI surging to 31.2 from 8, and -DI dropping to 16.4 from 30.7.

This significant shift highlights a strong increase in buying pressure and a decrease in selling pressure, suggesting that bulls have regained control after a period of dominant sellers.

Since Stellar is attempting to transition from a downtrend into an uptrend, this increment in +DI is a positive sign. But for the new trend to gain strength, ADX would need to stabilize and turn upward, confirming growing momentum.

If ADX continues decreasing, XLM could consolidate before making a decisive move, but if it rises alongside +DI, it will reinforce a stronger breakout to the upside.

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Stellar’s Chaikin Money Flow (CMF) indicator has quickly risen to 0.13, recovering from -0.14 just three days ago, after briefly touching 0.18 a few hours ago.

Generally, CMF values above 0.05 suggest capital is flowing into the asset, while values below -0.05 signal capital outflow.

With Stellar’s CMF now at 0.13, buying pressure has clearly strengthened, recovering from the prior bearish trend when CMF was negative.

This shift suggests that investors have been accumulating XLM over the past few days, supporting its recent price recovery. However, since CMF peaked at 0.18 before slightly decreasing, some short-term profit-taking may have occurred.

If CMF remains in positive territory and trends higher again, it will indicate further upside potential, but if it starts dropping back to lower values, it could signal weakening demand and a possible price pullback.

Stellar’s EMA lines still indicate a bearish trend, with short-term EMAs positioned below the long-term ones. However, the recent upward movement in short-term EMAs suggests that momentum could be shifting, increasing the chances of a trend reversal.

If buying pressure continues, Stellar’s price could rise to test the resistance at $0.309, a key level that would determine whether the recovery can sustain itself.

A breakout above this resistance could fuel further upside, potentially pushing XLM toward $0.349. A stronger uptrend could lead to a rally toward $0.375.

On the downside, if the short-term recovery loses strength and buyers fail to establish an uptrend, Stellar could face renewed selling pressure.

In this scenario, the first key support level to watch would be $0.273, which has acted as a critical zone in previous price action. A breakdown below this level could expose XLM to further losses, with support at $0.252 as the next major level.

If bearish momentum intensifies, the price could decline further, potentially reaching $0.226, marking a deeper correction before any potential reversal.