Stellar (XLM) falls sharply as the outflow continues.

Stellar (XLM) is experiencing significant fluctuations and a clear fall as investor sentiment weakens. Despite efforts to bounce back, this altcoin still faces many challenges in returning to previous peak levels. The market remains bleak, with most investors maintaining a cautious attitude, causing prices to continue to be under downward pressure.

Stellar investors are losing confidence

The Chaikin Money Flow indicator (CMF) has continuously remained below the 0 threshold since the beginning of the month, indicating that money is strongly flowing out of XLM. This reflects the uncertainty of investors, limiting new capital inflow into the asset.

When the CMF is still in the negative, it indicates that confidence in the short-term outlook of XLM is declining. Many investors tend to withdraw their capital, leading to prolonged pessimism in the market.

CMF XLM | Source: TradingViewThe relative strength index (RSI) of XLM has fallen below the neutral threshold, further reinforcing the bearish outlook. As an important indicator reflecting market momentum and conditions, the current position of the RSI indicates that XLM is notably weakening.

As the RSI continues to fall, the market outlook for XLM remains gloomy, confirming that this altcoin is under strong selling pressure and the possibility of bouncing back is still far off.

RSI XLM | Source: TradingView## XLM has not shown signs of bouncing back after the fall trend

Currently, the price of XLM is fluctuating around the level of 0.4 dollars and traders are trying to hold this level as a support point. However, in the context of a weak market and the technical indicators mentioned, the likelihood of this altcoin bouncing back in the short term is quite low. The fact that the Parabolic SAR indicator is above the price candles further confirms the prevailing downtrend, making it difficult for XLM to reverse.

The next important support level is $0.35 – a price that was recorded over a month ago. If the downtrend continues, the price may fall to this level, triggering additional selling pressure from investors. This will reinforce the pessimistic sentiment in the market and extend the period of weak prices.

XLM Price Analysis | Source: TradingViewHowever, if XLM bounces back from the support level of $0.4, the price could recover to around $0.42, even advancing to $0.45, provided that investors change their sentiment and return to the market. A successful rebound will break the current bearish outlook and open up opportunities for this altcoin to rise again.

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