XLM Price Breakdown, Traders Eyes on 60% Rally
Despite continued market volatility, XLM is making its mark against the entire crypto market, including Stellar Lumen's Token, Bitcoin (BTC), Ethereum (ETH) and Solana (SOL). Starting today, January 1, 2025, XLM led the market with an 11 percent gain in the last 24 hours.
Why is the price of XLM increasing?
With this impressive upward momentum, XLM is currently trading near $0.375. However, this significant development started earlier than the Asian trading session. Meanwhile, the move attracted more traders and investors, causing trading volume to jump 95 percent over the same period.
The likely reason for this rally is XLM's strong price action and the unwinding of millions of dollars worth of short positions, according to on-chain analyst firm Coinglass.
Liquidation of short positions
The data shows that traders trading XLM managed to liquidate short positions of $531,570 out of $711,230 in the last four hours. This indicates that the bulls will now dominate the asset and have the potential to create more short flows in the coming hours.
Currently, the main liquidity areas are $0.356 on the downside and $0.383 on the upside, traders are overextended at these levels, according to the XLM Exchange Liquidity Map.
According to the data, if the sentiment does not change and the price rises to the $0.383 level, about $3.48 million worth of short positions will be liquidated. On the contrary, if the sentiment changes and the price drops to the $0.356 mark, about $8.62 million long positions will be liquidated.
This data shows that bulls are betting strongly on the long side as they believe that the price of XLM will not fall below $0.356.
XLM technical analysis and price forecast
Based on expert technical analysis, XLM looks bullish as it has broken out of bullish flag and pole price patterns on the daily time frame. However, the leak itself does not confirm whether the leak is successful or fake.
Based on recent price action and historical price progress, if XLM breaks the pattern and closes a daily candle above the $0.38 mark, there is a 60% chance that the asset could go up by 60% to reach the $0.60 mark in the future.
In addition to this bullish outlook, if XLM fails to hold its 24-hour gains and closes the daily candle above the $0.33 mark, it may decline by 30% to reach the $0.218 mark.
