In the midst of ongoing market fluctuations, Stellar Lumen’s native token, XLM, is making a significant impact by defying the general crypto market trends, including giants like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). As of January 1, 2025, XLM has impressively surged with an 11% gain in the last 24 hours, capturing the attention of investors and traders alike.
Why is the XLM Price Increasing?
XLM’s remarkable upward trajectory has propelled its trading value to approximately $0.375. This surge began just before the Asian trading session, drawing increased interest from traders and investors, resulting in a noteworthy 95% boost in trading volume during the same period. The rally is attributed to XLM’s bullish price movements and the liquidation of significant short positions, as highlighted by the on-chain analytics firm, Coinglass.
Liquidation of Short Positions
Recent data indicates that traders engaged in XLM have liquidated $531,570 worth of short positions out of a total of $711,230 in liquidations over the past four hours. This trend signals that bullish sentiment is prevailing, heightening the potential for further short liquidations in the near future.
Presently, the major liquidation thresholds are at $0.356 on the lower end and $0.383 on the upper end, with traders being over-leveraged at these levels, as per the XLM exchange liquidation map. Should the sentiment remain constant and the price climbs to $0.383, nearly $3.48 million worth of short positions might be liquidated. Conversely, if the sentiment shifts and the price dips to $0.356, approximately $8.62 million worth of long positions could be at risk.
This data underscores the bullish confidence in XLM, with many believing that its price will remain above the critical $0.356 threshold.
XLM Technical Analysis and Price Prediction
Expert technical analysis suggests that XLM is exhibiting bullish behavior, having broken out from a bullish flag and pole price action pattern on the daily chart. It’s important to note that while the breakout is promising, it does not inherently guarantee success or rule out the possibility of a fakeout.
Analyzing the recent price trends and historical momentum, if XLM successfully breaches the pattern and closes a daily candle above the $0.38 mark, there is a strong likelihood that the asset could experience a 60% surge, potentially reaching the $0.60 level in the foreseeable future. On the flip side, if XLM fails to sustain its 24-hour gain and closes below the $0.33 mark, it could face a 30% decline, bringing the price down to approximately $0.218.
As XLM continues to chart its own course amidst market uncertainty, investors and traders are keeping a vigilant eye on its price movements, looking for signs of continued growth or potential reversals.
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