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XLM, the native token of Stellar, appears to have completed its ongoing price correction as its on-chain metrics hint at a bullish outlook. Since the presidential election results in the United States, the overall cryptocurrency market has witnessed a significant upside rally. Amid this, XLM has recorded a substantial 430% gain.
$63 Million of XLM Outflow
Following notable upside momentum, XLM is currently experiencing a price correction and appears to be consolidating within a tight range. Amid this ongoing consolidation, whales and investors seem to have increased their interest and confidence in the token, according to on-chain analytics firm Coinglass.
Data from XLM spot inflow/outflow indicates that cryptocurrency exchanges have witnessed a significant $63 million outflow of XLM. In the cryptocurrency context, outflow refers to the movement of assets from exchanges to wallet addresses, potentially signaling buying pressure on the asset and reducing the likelihood of a price decline.
This substantial outflow appears to be a bullish sign for the altcoin, as it is the first time XLM has experienced such a significant outflow from exchanges.
XLM Technical Analysis and Upcoming Level
According to expert technical analysis, XLM, currently moving in a tight range between $0.42 and $0.60 level, whereas it is currently falling from the upper level of the zone to the lower zone. Based on recent price action, there is a strong possibility that the asset could initially drop by 15% to reach the lower level of $0.42 before experiencing a significant upward movement 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. Whereas, its Relative Strength Index (RSI) on the daily time frame currently stands at 63, indicating that the asset still has room to soar.
Current Price Momentum
At press time, XLM is trading near $0.50 and has experienced a price drop of over 5.6% in the past 24 hours. During the same period, its trading volume dropped by 62%, indicating lower participation from traders and investors compared to the previous day.