Record Outflow Reaches $63 Million, Bullish Signal for XLM to Compete with XRP?

Bittime - XLM's outflow record reached $63 million (around Rp. 996 billion), providing a bullish signal. Is XLM ready to compete with XRP? Check out today's XLM price predictions!

After a massive 430% surge since the US presidential election results, many believe that XLM may be gearing up for another surge. One signal that strengthens this speculation is the very large outflow, reaching $63 million (around Rp. 996 billion) in a short time.

This outflow phenomenon indicates increasing interest from large investors, or “whales”, who are starting to shift their XLM holdings from crypto exchanges to private wallets. 

What's interesting about this move is that large outflows like this are often considered a bullish signal in the crypto world. Why is that? Check out the review.

What is Outflow Flow and What Does It Mean for XLM?

Outflow refers to the movement of crypto assets leaving exchanges and entering investors' personal wallets. When a lot of tokens are moved to private wallets, it indicates that the holders do not intend to sell in the near future. 

Instead, they are more likely to hold onto those tokens for the long term, hoping the price will rise in the future. For XLM, this is the first time this token has experienced an outflow of $63 million (around IDR 996 billion) from an exchange.

For market observers, this phenomenon is a positive signal, showing that many investors believe in the potential for future growth in XLM prices. 

These large outflows indicate that there are fewer tokens available on exchanges, which could create scarcity and push prices up.

Read also: Stellar (XLM) Coin: Price Analysis Based on On-Chain and Technical Data

XLM Experiences Price Correction

Sumber: Coingecko

Even though there are bullish signals from the outflow, XLM is currently undergoing a price correction after experiencing a big spike. Since peaking, the price of XLM has moved in a relatively narrow range between $0.42 (around IDR 6,636) and $0.60 (around IDR 9,480). 

This price correction is quite natural after prices have risen sharply, because the crypto market often experiences a consolidation phase after significant increases.

Technical analysis predicts that XLM may fall further by around 15%, approaching the $0.42 level (around Rp. 6,636) before finally turning up. This correction helps rid the market of “weak hands”—investors who might quickly panic and sell. 

Once this phase is complete, the market will be more ready to rise again, which is why analysts believe that XLM could return to strength in the near future.

XLM Technical Indicators

Looking at the technical indicators, XLM still shows quite optimistic prospects despite the price correction. One important indicator, 200-day Exponential Moving Average (EMA), indicating that the long-term trend of XLM is still upward. 

Besides that, Relative Strength Index (RSI) XLM is at 63, which shows that although the price of this token has risen quite a bit, there is still room for further increases without getting too close to overbought conditions.

Overall, despite the price decline in recent days, technical indicators suggest that this correction phase may be temporary. If XLM can stay above the support level of $0.42 (around Rp. 6,636), there is potential for significant upside in the coming weeks.

Read also: Stellar (XLM) Price Prediction 2025

Current XLM Market Momentum

HThe price of XLM is around $0.48 (around IDR 7,700). This coin experienced a decline of 5.6% before rising 1.2% in the last 24 hours. This price decrease was accompanied by a 13% decrease in trading volume. 

This indicates a decrease in market participation compared to previous days. While this price drop could be a short-term worry for some investors, for those who believe in XLM's long-term potential, this could be an opportunity to purchase the token at a lower price.

With a combination of large outflows, a healthy price correction, and positive technical indicators, XLM is in a pretty good position to continue its bullish run going forward. 

Read also: Stellar (XLM): Explanation, Functions, and Everything You Need to Know

Conclusion

XLM is showing many signals indicating that this token has the potential to continue its bullish movement after the correction phase. The outflow of $63 million (around Rp. 996 billion) shows strong interest from large investors, who tend to hold these tokens for the long term. 

Coupled with optimistic technical indicators, XLM could compete with XRP in the coming weeks, especially if the price can stay above the support level and the market strengthens again.

FAQ About XLM

What is XLM?

Stellar (XLM) is a blockchain designed to facilitate fast, secure, and low-cost cross-border payments. Using the Stellar Consensus Protocol (SCP), a unique consensus protocol that does not require mining, Stellar allows transactions to be validated in seconds, at very low fees.

Will XLM reach $10?

Stellar XLM has the potential to reach $1 in the near future, but it can be considered difficult for the coin to cross the $10 threshold in the near future. However, this does not mean that this coin has no potential; anything is possible in the highly volatile crypto market.

Does XLM have a future?

CoinCodex predicts XLM will trade between $0.116995 and $0.456503 in 2030. While CoinPedia has a more bullish outlook with an average forecast of $0.982. 

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Reference: 

The Currency Analytics, XLM Records $63 Million Outflow, Indicating Bullish Potential, accessed December 7, 2024

Coingecko, Chart Stellar Coingecko, accessed December 7, 2024

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