Crypto Stellar gained 30% thanks to trader confidence

This recovery has brought optimism back to the market, giving this altcoin a chance to continue its bullish momentum and aim for higher price levels.

Stellar investors are undecided

Over the past few weeks, Stellar’s funding rate has remained consistently positive. This indicates that XLM crypto traders have maintained a bullish outlook on the asset despite the previous decline in its price. The optimism shown by these market participants therefore suggests an expectation of recovery, which is in line with the recent performance of the XLM price.

The persistence of a positive funding rate, even during periods of price correction, underlines investors’ confidence in the Stellar crypto’s potential for a rebound. This bullish sentiment contributed to the recovery of the asset, providing the basis for a sustained uptrend in the short term.

From a macro perspective, Stellar’s Chaikin Money Flow (CMF) indicator is hovering around the zero line, reflecting weak inflows into its market. This demonstrates continued uncertainty among investors, which could hamper the asset’s recovery if this sentiment persists. Without a considerable increase in inflows, Stellar’s price could indeed remain vulnerable to corrections.

Investor uncertainty continues to influence Stellar’s market performance. Stronger inflows are therefore necessary to stabilize the asset and support an increase. Until this happens, the crypto may face difficulty maintaining its current recovery trajectory.

Will the Stellar price recovery last?

Stellar has seen a 30% rally since the start of the year, with its price currently sitting at $0.429. The altcoin managed to secure the $0.416 area as a support level, strengthening its position in addition to signaling the potential for further bullish movement.

To fully recover from December losses, Stellar would need to reach the $0.583 mark. For this, it will need significant market support and renewed confidence from its investors. Such a recovery would, however, validate the bullish outlook and solidify the long-term growth prospects of XLM.

However, if conditions across the entire market turn bearish, the Stellar crypto could instead fall below its critical support level of $0.416. This decline could then push the asset back to $0.355, negating the bullish outlook and delaying any further recovery efforts. Such a scenario highlights the importance of sustained investor confidence and market support for maintaining Stellar’s upward momentum.

Moral of the story: Stellar aims for the stars when the rest of crypto aims for the abyss.