XLM : A Tug of War Between Buyers and Sellers
Despite a bullish breakout on the chart, Stellar (XLM) is struggling to take off. Although its potential remains intact, record exchange balances and sluggish momentum explain this status quo.
Even though Stellar displays a favorable technical structure, with its price maintained within an ascending triangle, the record XLM exchange balances (over 1 billion tokens) create a ceiling effect. Each bullish push risks being countered by a wave of selling, currently preventing XLM from soaring.
Demand Remains Solid Despite Selling Pressure
Despite this selling pressure, the Money Flow Index (MFI) remains well-oriented, above 50. This shows that buyers are still active, maintaining prices, even if they don’t yet have the strength to overcome this abundant supply. A precarious balance that explains Stellar’s current waiting phase.
Zooming in on the 4-hour chart, we can see that XLM is evolving within an ascending triangle, a technical configuration favorable to continued upward movement. However, momentum is waning, with the RSI printing lower highs despite higher prices, a sign of short-term exhaustion.
Stellar’s bullish potential is still present. The record exchange balances and this slowing momentum suggest that gains might take longer to materialize. A breakout above $0.47 would be an encouraging signal, but caution remains necessary in this market’s waiting phase.
