The post XLM Price Breakout, Traders’ Eyes on 60% Rally appeared first on Coinpedia Fintech News
Despite ongoing market uncertainty, XLM, Stellar Lumen’s native token, is making its own mark by defying the overall crypto market, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). As of today, January 1, 2025, XLM has led the market with an 11% gain in the past 24 hours.
Why is the XLM Price Increasing?
With this impressive upward momentum, XLM is currently trading near $0.375. However, this notable rise began just ahead of the Asian trading session. Meanwhile, this momentum has further attracted traders and investors, leading to a 95% jump in trading volume during the same period.
The potential reason for this rally is XLM’s bullish price action and the liquidation of millions of dollars worth of short positions, as reported by the on-chain analytics firm Coinglass.
Liquidation of Short Positions
Data revealed that traders trading XLM have liquidated $531,570 worth of short positions out of a total of $711,230 in liquidations over the past four hours. This suggests that bulls are now dominating the asset and have the potential for further short liquidations in the coming hours.
As of now, the major liquidation areas are $0.356 on the lower side and $0.383 on the upper side, with traders over-leveraged at these levels, according to the XLM exchange liquidation map.
Based on the data, if the sentiment remains unchanged and the price rises to the $0.383 level, nearly $3.48 million worth of short positions will be liquidated. Conversely, if the sentiment changes and the price declines to the $0.356 mark, approximately $8.62 million worth of long positions will be liquidated.
This data shows that bulls are strongly betting on the long side, as they believe XLM’s price won’t fall below the $0.356 mark.
XLM Technical Analysis and Price Prediction
According to expert technical analysis, XLM appears bullish as it has broken out from a bullish flag and pole price action pattern on the daily time frame. However, the breakout itself does not confirm whether it is successful or a fakeout.
Based on the recent price action and historical price momentum, if XLM breaches the pattern and closes a daily candle above the $0.38 mark, there is a strong possibility that the asset could soar by 60% to reach the $0.60 mark in the future.
Besides this bullish outlook, if XLM fails to hold its 24-hour gain and closes a daily candle below the $0.33 mark, it could drop by 30% to reach the $0.218 mark.