XLM Price Correction Coming Soon? Here's the Explanation

Stellar (XLM) has enjoyed a bullish phase recently, but technical indicators now hint at a possible short-term correction. Despite holding a favorable chart pattern, growing exchange balances and weakening momentum suggest that a pullback could be on the horizon.

The current market is a tug-of-war between buyers and sellers. While demand remains steady, record-high exchange balances are acting as a supply ceiling, capping upward momentum. This dynamic has placed XLM in a consolidation phase, with traders watching closely for a decisive breakout or a correction.

Read Also: Stellar (XLM) Crash or Comeback?

Key Takeaways

• XLM is trading within an ascending triangle pattern but faces selling pressure from record-high exchange balances.
• The Money Flow Index (MFI) is above 50, showing active buying despite increased supply.
• RSI divergence points to waning momentum and possible short-term exhaustion.
• A breakout above $0.47 would signal renewed bullish strength.
• Bitrue has launched a USD1/XLM trading pair, simplifying fiat purchases for Stellar.

Buyers Active, But Selling Pressure Holds Strong

On-chain data shows that over 1 billion XLM tokens are currently sitting on exchanges — a record figure. This creates a significant barrier to price growth, as any upward move faces the risk of large-scale selling from holders looking to take profits.

Despite this, the MFI remains positive at around 51, indicating that buyers are still engaged. This has allowed Stellar’s price to maintain its upward trajectory within the ascending triangle, but the buying pressure has yet to overpower the sheer volume of available supply.

Momentum Weakening: RSI Signals

Zooming into the 4-hour chart, Stellar’s RSI is forming lower highs while prices are making higher highs. This bearish divergence often signals that momentum is slowing, and a near-term correction could be imminent.

If sellers gain the upper hand, XLM may retest support levels near $0.43 or even $0.29. Conversely, a confirmed breakout above $0.47 could invalidate the short-term bearish outlook and reignite bullish sentiment.

Read Also: Top 4 Stellar Use Cases You Need to Know 

New USD1/XLM Trading Pair on Bitrue

Bitrue has introduced a USD1/XLM trading pair, giving users the ability to buy Stellar directly with USD1 without having to first convert to stablecoins like USDT. This makes onboarding into XLM faster and more accessible for both retail and institutional investors.

How to Buy XLM on Bitrue (USD1/XLM):

1. Sign in or create a Bitrue account.
2. Deposit USD1 or supported fiat currencies.
3. Navigate to the USD1/XLM trading page.
4. Enter your desired purchase amount and confirm the order.

This listing enhances liquidity for Stellar and provides a more seamless fiat-to-crypto experience for traders worldwide.

Will XLM Correct or Break Out?

Stellar’s technical setup still leans bullish in the bigger picture, but the combination of high exchange balances and momentum divergence suggests the market may need a breather. If demand remains steady and supply pressure eases, XLM could push above its $0.47 resistance.

However, in the immediate term, traders should be prepared for volatility and the possibility of a pullback before any sustained rally.

Final Thoughts

XLM’s current market behavior reflects a delicate balance between strong demand and heavy supply. While its ascending triangle pattern offers bullish potential, weakening momentum and record exchange balances could lead to a short-term correction.

The newly launched USD1/XLM pair on Bitrue could help bring in fresh liquidity, potentially tipping the scales in favor of buyers in the long run. Until then, cautious optimism is warranted.

Read Also: Can XLM 5x From Here? Looking at Stellar's Price Movement

FAQs

What is the current MFI for Stellar (XLM)?

The Money Flow Index is around 51, indicating moderate buying activity despite selling pressure.

Why is XLM facing selling pressure?

Over 1 billion XLM tokens are currently held on exchanges, creating a strong supply barrier.

What price level would confirm a bullish breakout?

A sustained move above $0.47 would be a strong bullish signal.

How can I buy XLM with USD1 on Bitrue?

Log in to Bitrue, deposit USD1, select the USD1/XLM pair, and place your order.

Could XLM experience a correction soon?

Yes, weakening momentum and supply pressure suggest a short-term pullback is possible.