Is Stellar (XLM) Really Gonna Hold That 6% Gain? Here’s the Plot Twist…

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Stellar’s XLM token has decided to flex its muscles this week, climbing 6% like it’s the first time it’s ever seen a bull market. As the broader crypto world is cautiously attempting to recover, XLM is out here strutting its stuff at $0.28. Sure, that’s cute and all. But let’s not break out the confetti just yet. 🎉

It’s probably the latter. 😬

XLM: The Struggle is Real

Now, for the part where it gets a little less glamorous: XLM’s Chaikin Money Flow (CMF), the thing that tells us how much actual buying pressure is happening, is giving us the cold shoulder. Despite the pretty 6% uptick, the CMF is doing its best impression of a sad, deflating balloon. It’s hanging out below the zero line at -0.10. 😭

What does this mean? Well, when an asset’s price goes up but the CMF is like, “nah, I’m not interested,” it’s basically saying, “I’m here for the party, but I’m not actually bringing any chips or dip.” Not exactly the kind of support you want when you’re trying to look cool in the market.

If this trend continues, don’t be surprised if XLM decides to go on a little vacation to the downside. The risk of a sudden reversal is very real. ⬇️

Oh, and just to add some spice to this party, XLM’s funding rate has flipped negative for the first time in six days. That’s like when you realize your friend’s been secretly texting your ex. The market’s starting to get a little suspicious, and short traders are taking over with their bets on XLM’s downfall. Currently, that funding rate sits at a not-so-encouraging -0.0018%. 😬

The funding rate is like a peek into traders’ moods. When it’s negative, it’s the market equivalent of everyone whispering about how the XLM party is over. More people are betting on the decline than on a rally. The vibe is definitely “bearish.” 🐻

As these bearish vibes keep growing, the demand for XLM could keep dropping, and with that, so could its price. Talk about an uninvited guest. 🙄

XLM: From $0.63 to $0.28—Can It Bounce Back?

On the daily chart, XLM’s been hanging out in a descending parallel channel like it’s trying to set a new record for “longest slide into disappointment.” Since peaking at $0.63 last November (remember that?), it’s now languishing at $0.28, down a cool 55%. Maybe not the “recovery” people were hoping for. 💸

If XLM doesn’t pull itself together soon, it could break the bottom trendline of this sad little channel and hit a new low around $0.23. That’s the kind of plot twist you don’t want in your crypto story. 📉

But hey, let’s not be total downers. If XLM manages to get its act together and see some solid accumulation, maybe—just maybe—it could break through resistance at $0.30 and make a run for $0.41. But, again, that’s a big “maybe.” We’re not holding our breath. 😏

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2025-03-20 19:44