What to expect from the price of Stellar

The Stellar (XLM) course has reached maximum values over the past five months, which made the coin one of the most successful in the crypto?

The price is growing with confidence connected by traders, but altcoin is close to the state of overwhelming and may be subject to correction in the coming days.

Stellar traders are optimistic

Open interest (OI) in XLM last week increased by 127% – from $ 160 million to $ 346 million. This means that traders opened many new positions in anticipation of strong price movements. In addition, the growing interest is accompanied by a positive financing rate: traders with long positions pay traders with short positions.

The Tchaikin cash flows (CMF) indicates a stable tributary of capital in the XLM and confirms the positive mood of investors regarding the long -term Stellar prospects. But if the CMF rises above 20.0, the market will enter the phase of overwhelming.

Market participants are optimistic, however, a large number of long positions, as well as the dynamics of the Tchaikin indicator indicate the market overheating and the possibility of correction. Investors need to carefully look at the graphs in order to notice signs of a possible reduction in price in time.

Can the price of XLM continue to grow

The price of XLM has increased by 21% over the past 24 hours to $ 0.436 – almost reached an important resistance level of $ 0.439. In a month, Altcoin added 83%, which shows the growing interest of investors. Approaching the resistance, the price can get stuck in the range of $ 0.412– $ 0.439. If active sales begin, XLM can fall to $ 0.355 – this level will become a new support.

Event scenarios:

• While maintaining growth: XLM will break through the resistance of $ 0.439 and can reach $ 0.500 next week.
• With a breakdown $ 0.500: This will confirm the continuation of the bull trend and will open the way to further growth.
• When changing moods: Altcoin will encounter correction, which will cancel the growth scenario.

XLM demonstrates strong bull signals: an increase in open interest by 127%, positive cash flows and 83% growth per month. However, the high activity of traders and approaching the key resistance of $ 0.439 create risks of correction. Investors should monitor the breakdown of $ 0.500 as a confirmation of the continuation of the trend or prepare for a rollback of $ 0.355 when changing the mood of the market.

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