XLM Price Breakout, Traders’ Eyes on 60% Rally
Despite continued market uncertainty, Stellar Lumen’s native token, XLM, is making its mark by challenging the entire crypto market, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). As of today, January 1, 2025, XLM is leading the market with an 11% gain in the past 24 hours.
Why is XLM price rising?
With this impressive upward momentum, XLM is currently trading near $0.375. However, this significant rise began before the Asian trading session. At the same time, this momentum further attracted traders and investors, causing trading volume to surge by 95% during the same period.
Potential reasons for the rise are bullish price action in XLM and the liquidation of short positions worth millions of dollars, the on-chain analytics firm reported. coin glass.
Short position liquidation
Data shows that traders trading XLM have liquidated short positions worth $531,570 in the past four hours, with liquidations totaling $711,230. This suggests that bulls now dominate the asset and further short liquidation is likely in the coming hours.
According to the XLM exchange liquidation chart, as of now, the main liquidation areas are the lower limit of $0.356 and the upper limit of $0.383, with traders being overleveraged at these levels.
Data shows that if sentiment remains unchanged and the price rises to the $0.383 level, short positions worth nearly $3.48 million will be liquidated. Conversely, if sentiment changes and the price drops to the $0.356 mark, long positions worth approximately $8.62 million will be liquidated.
This data shows that bulls are betting strongly that the price of XLM will not drop below the $0.356 mark.
XLM Technical Analysis and Price Prediction
According to expert technical analysis, XLM Looks bullish as it has broken out of a bullish flag and extreme price action pattern on the daily time frame. However, the breakout itself does not confirm whether it is a success or a false breakout.
Based on recent price action and historical price momentum, if XLM breaks out of this pattern and closes the day above the $0.38 mark, the asset has a high chance of surging 60% to the $0.60 mark in the future.
In addition to this bullish outlook, if XLM fails to hold its 24-hour gains and close below the $0.33 mark, it could drop by 30% to hit the $0.218 mark.
