Stellar (XLM) price prediction: Investors lack confidence, and funds continue to flow out! Can XLM hold the key support at $0.35?

XLM has recently faced significant fluctuations and price retracement, with investor sentiment remaining low, making recovery difficult. The Chaikin Money Flow (CMF) and the Relative Strength Index (RSI) both indicate that the market is in a bearish state, with on-chain capital outflow intensifying. If the support level at $0.40 cannot be held, XLM may further dip to the low of $0.35.

XLM price experiences significant fluctuation, investor confidence continues to weaken Stellar (XLM) is experiencing significant Fluctuation and price pullbacks. Despite multiple attempts to recover, it is still struggling to return to previous highs. The market environment continues to deteriorate, and investors are generally hesitant about re-entering, leading to a continued fall in price.

Stellar on-chain capital outflow intensifies, CMF indicator remains negative

(XLM CMF | Source: TradingView) Since the beginning of this month, the Chaikin Money Flow (CMF) has remained below the zero line, indicating that XLM is facing a significant outflow of funds. Investor uncertainty is high, hindering new capital inflows. The sustained negative CMF reflects a lack of confidence in XLM's short-term prospects, with capital withdrawal leading to a continuation of bearish sentiment.

RSI falls below the neutral line, XLM technical outlook further deteriorates

(XLM RSI | Source: TradingView) The relative strength index (RSI) of XLM has fallen below the neutral line, reinforcing bearish expectations. The RSI is a key indicator that tracks momentum and market conditions, and its current position shows that XLM's momentum continues to weaken. With the RSI declining, the overall market environment is unfavorable for XLM, further indicating that the token is facing significant selling pressure, with little hope for a short-term recovery.

Is the XLM price unaware of the dip trend? Key support level is being tested XLM is currently priced at $0.40, and the bulls are trying to maintain it as a support level. However, based on the current market environment and technical indicators, the likelihood of XLM recovering its losses in the short term is low. The Parabolic SAR is positioned above the candlesticks, confirming that the downtrend is ongoing, making price reversal difficult.

The next key support level is at $0.35; a fall below this may trigger further selling The next important support level for XLM is at $0.35, which is the low point from over a month ago. If the downtrend continues, the price may dip to that level and trigger more investors to sell, reinforcing bearish sentiment and extending the weak cycle.

If XLM successfully rebounds from the 0.40 support level and investor sentiment turns positive, it may recover to 0.42 or even 0.45. Such a rebound would reverse the current bearish logic.

Conclusion The short-term outlook for XLM remains pessimistic, with capital outflows and weak technical indicators jointly suppressing price movements. Investors need to closely monitor the performance of the 0.40 USD support level; if it fails, it may accelerate a dip to 0.35 USD. The restoration of market confidence and capital inflow will be key to a rebound, and it is advised to remain cautious and pay attention to on-chain data changes.