$63 Million of XLM Outflow, Bullish Signal or What?
Stellar’s native token, XLM, appears to have completed an ongoing price correction as its on-chain indicators hint at a bullish outlook. The entire cryptocurrency market has seen significant gains since the results of the U.S. presidential election were announced. Among them, XLM surged 430%.
$63 million in XLM leaked
Following significant upward momentum, XLM is currently experiencing a price correction and appears to be consolidating within a tight range. Amid this ongoing consolidation, whales and investors appear to be increasing their interest and confidence in the token, according to on-chain analytics firm Coinglass.
XLM spot inflow/outflow data shows that cryptocurrency exchanges have experienced XLM outflows of up to $63 million. In the cryptocurrency context, outflows are the movement of an asset from an exchange to a wallet address, potentially indicating buying pressure on an asset and reducing the likelihood of a price decline.
This massive outflow appears to be a bullish sign for the altcoin as this is the first time XLM has experienced such a massive outflow.
XLM Technical Analysis and Upcoming Levels
According to expert technical analysis, XLM is currently trading within a narrow range between $0.42 and $0.60 levels, while it is currently falling from the upper to the lower levels of this zone. Based on the recent price action, the asset is very likely to initially fall by 15% to reach lower levels of $0.42 before experiencing a significant rise in the coming days.
As of now, the asset is trading above the 200 exponential moving average (EMA) on the daily time frame, indicating an uptrend. However, its daily relative strength index (RSI) currently stands at 63, indicating that the asset still has room to surge.
Current Price Momentum
At press time, XLM was trading close to $0.50, with the price down more than 5.6% in the past 24 hours. During the same period, its trading volume fell by 62%, indicating that trader and investor participation was lower than the previous day.
