XLM price forecast for January 11
After a sustained price decline, the cryptocurrency market seems to be recovering, and Stellar (XLM) seems to be regaining its momentum. In the last three days, XLM experienced a price decline of more than 18% and also broke the critical support level of $0.403.
XLM Bulls Back
However, with today's upside momentum, XLM has returned to support levels and is poised for further gains. This price recovery in the crypto market, including XLM, is due to the upcoming inauguration of President Donald Trump scheduled for January 20, 2025.
With this potential price recovery, the XLM daily chart has created an ideal setup for traders looking to go long, with a perfect risk-to-reward ratio.
XLM technical analysis and upcoming levels
According to the XLM daily chart, traders can see an attractive 1:5.6 risk-to-reward ratio, with a stop loss at the $0.38 and $0.60 mark.
Delving deeper into the analysis, professional technical analysis shows that XLM is forming a head and shoulders price action pattern on the daily time frame.
Based on the recent price action, if XLM closes the daily candle above the $0.415 mark, there is a possibility that it will go higher and complete the predicted price action pattern.
Traders overused areas
Given this bullish outlook, traders appear to be building long positions, according to the chain analysis firm Coinbase.
According to the data, the main liquidity level on the downside is $0.388, with traders holding long positions worth $7.47 million. However, $0.422 is another major liquidation area where short sellers have built over $2.09 million worth of short positions.
These levels are the places where traders are overpowered and where the price can be pulled out if it turns to any level.
Current price momentum
Currently, XLM is trading around $0.418, up over 4.5% in price. But at the same time, the volume of transactions increased, which increased the participation of traders and investors.
