XLM Price Prediction For January 11
After a continuous decline in prices cryptocurrency The market appears to be recovering and Stellar Lumens (XLM) appears to be regaining its bullish momentum. Over the past three days, XLM’s price fell by more than 18% and broke above the key support level of $0.403.
XLM Bulls Return
However, with today’s bullish momentum, XLM has moved back to support and is poised for further gains. A potential reason for the price recovery across the cryptocurrency market, including XLM, is the upcoming inauguration of President-elect Donald Trump on January 20, 2025.
With this potential price recovery, the XLM daily chart provides an ideal setup for traders looking to go long, with a perfect risk-reward ratio.
XLM Technical Analysis and Upcoming Levels
According to the daily chart of XLM, traders can see an attractive risk-to-reward ratio of 1:5.6, with a stop loss of $0.38 and a target of $0.60 mark.
If we delve deeper into the analysis, expert technical analysis suggests that XLM is forming a bullish inverted head and shoulders price action pattern on the daily time frame.
Based on the recent price action, if XLM closes its daily candle above the $0.415 mark, there is a high chance that it will surge sharply and complete the speculated price action pattern.
Traders overleverage positions
On-chain analytics firm reveals that traders appear to be building long positions given this bullish outlook coin glass.
Data shows that there is a major liquidation level below at $0.388, with traders holding large long positions worth $7.47 million. However, $0.422 was another major liquidation area, where short sellers established short positions worth over $2.09 million.
These levels are areas where traders are overleveraged and risk liquidation if the price moves to either level.
Current Price Momentum
Currently, XLM is trading near $0.418 and is witnessing a price increase of over 4.5%. However, its trading volume has also increased during the same period, indicating increased participation from traders and investors.
