XLM price forecast for January 4

Stellar's native XLM experienced a massive 40% increase in the last three days in January 2025. In a short period of time, this spectacular price increase has attracted the attention of prominent investors and traders in the crypto space.

Profit booking in XLM?

However, concerns are growing as some investors seem to be continuously dumping XLM on exchanges, according to on-chain analyst firm CoinGlass. Data from inflows/outflows shows that as the altcoin surges, exchanges have recorded a massive outflow of $36.36 million worth of XLM tokens.

This high volume of exchanges indicates that long-term holders who bought the altcoin during profit booking last month may sell. In the cryptocurrency landscape, inflows often signal selling pressure and bearish prices.

However, this has seen XLM reach one of its strongest resistance levels at the $0.45 mark. The last time the altcoin approached this level, it experienced a prolonged consolidation, and now it is showing similar signs. This has raised concerns among traders and investors that the price may strengthen or decline further.

The current price action of XLM

Based on the recent price action, the price looks very stretched, so there is a high chance of consolidation near this level. This consolidation often attracts new investors, traders and long-term holders, strengthening XLM for further rallies.

XLM price forecast and current price momentum

According to professional technical analysis, XLM could rise by 30% to reach its 52-week high if this resistance level is broken and the daily candle closes above the $0.465 mark. Otherwise, consolidation and price sharing can continue.

At press time, XLM is trading near the $0.45 mark and has experienced a price increase of over 4.5% in the last 24 hours. During the same period, trading volume fell by 40 percent, indicating low participation by traders and investors, which could lead to price consolidation as it nears resistance levels.