Understanding XLM’s Recent Surge 🚀
This year, XLM, which is the native token of Stellar Lumen, stands apart from the volatile crypto environment, decisively outperforming major players like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). As of now, January 1, 2025, XLM has experienced a remarkable 11% increase in value within the last 24 hours.
What’s Driving XLM’s Price Growth?
Thanks to this impressive performance, XLM is trading close to $0.375. The escalation appears to have initiated just before the Asian trading session, generating enthusiasm among traders and investors. This surge resulted in a substantial 95% rise in trading volume concurrently.
One of the key triggers for this uptick seems to be related to the bullish activity surrounding XLM and the significant liquidation of numerous short positions, as observed by an on-chain analytics firm.
Impact of Short Position Liquidations
Recent data insights have disclosed that traders have liquidated approximately $531,570 worth of short positions from a total of $711,230 in liquidations over the previous four hours. This trend indicates that bullish market participants are currently maintaining control, suggesting that additional short liquidations could happen in the near future.
Currently, the significant liquidation thresholds are pegged at $0.356 for lower levels and $0.383 on the higher end, indicating a notable concentration of over-leveraging among traders within these ranges.
If sentiment remains favorable moving forward, and XLM’s price ascends to the $0.383 ceiling, it could trigger nearly $3.48 million in short position liquidations. Conversely, should market sentiment shift, leading to a decrease in price to around $0.356, approximately $8.62 million worth of long positions may face liquidation.
This analysis reflects that traders are heavily invested in the bullish sentiment, as they anticipate that the price of XLM will not retreat below the $0.356 benchmark.
Technical Review of XLM and Future Price Expectations 📈
Expert evaluations of XLM’s technical positioning reveal a bullish perspective as the asset has successfully broken free from a bullish flag and pole price action pattern on the daily time frame. Nevertheless, it remains to be seen whether this breakout indicates a genuine trend or a potential false signal.
Considering the current price movements and previous momentum characteristics, if XLM surpasses the key level and maintains a daily close above $0.38, there is a strong likelihood that it might ascend by 60%, potentially reaching the $0.60 mark in the near future.
In contrast, should XLM fail to sustain its recent uptrend and close below the $0.33 level on a daily basis, the asset could experience a decline of approximately 30%, possibly falling to the $0.218 mark.
Hot Take 🔥
This year has seen XLM establish itself uniquely in an unpredictable market landscape. Observers are keenly watching how the impending technical thresholds will play out, potentially influencing future price movements. Keep an eye on XLM’s performance as market dynamics evolve, and be aware of how both bullish and bearish trends impact its trajectory.
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