#TopContentChallenge#  Stellar Faces Increasing Outflows – Is XLM Price in Danger?

XLMUSD is facing downward pressure, with recent price action causing concern among investors. The cryptocurrency, which saw a 97% price surge earlier this month, is now on the verge of erasing these gains.

The next few days will largely depend on broader market movements, which will play a decisive role in the altcoin's recovery.

Stellar Investors Pull Back

The Chaikin Money Flow (CMF) indicator is showing a sharp decline and is currently at a three-week low. This suggests increasing outflows from Stellar, a negative signal for the asset.

Increasing outflows indicate diminished confidence in Stellar's short-term prospects, which is impacting price action. While the CMF is still in positive territory, it is dangerously close to crossing into negative territory.

If the CMF moves into this region, it would signal that outflows are exceeding inflows, pushing the XLM price further down.

Despite the downtrend, there are still some bullish signs in the broader market. The Relative Strength Index (RSI) for Stellar remains neutral above 50.0, suggesting that bullish momentum hasn't completely faded.

The RSI even registered a slight increase, suggesting there's still buying interest in the market, especially compared to broader market signals. Continued positive momentum in the broader cryptocurrency market could help mitigate Stellar's outflows.

XLM Price Seeks Momentum

The XLM price is currently at $0.426 and struggling to hold above the $0.424 support level. The downtrend observed over the past two weeks threatens to reverse the significant gains made earlier this month.

If the outflows continue and selling pressure intensifies, Stellar's price could fall to $0.393, a critical support level. A loss of this support could push the XLM price even lower, potentially reaching $0.359. This could erase much of the recent gains and further impact investor confidence.

On the other hand, if broader market conditions remain positive, XLM could find support at $0.393 and avoid further declines.

The only way to completely invalidate the bearish thesis is for XLM to regain support at $0.445, but this seems unlikely under current market conditions.

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