In a landscape marked by persistent market uncertainty, Stellar Lumen’s native token, XLM, has carved out a distinctive path by challenging the broader cryptocurrency market, including giants like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). As of January 1, 2025, XLM has distinguished itself with an impressive 11% gain in the last 24 hours, leading the market with its resilience and growth.
Understanding the Rise in XLM Price
Currently trading near $0.375, XLM has exhibited a noteworthy upward momentum. This surge kicked off shortly before the Asian trading session, drawing significant interest from traders and investors. The heightened activity has resulted in a remarkable 95% increase in trading volume during this period. Analysts attribute this rally to XLM’s bullish price movements and the substantial liquidation of short positions, as reported by the on-chain analytics firm Coinglass.
Liquidation of Short Positions
Recent data highlights that traders dealing in XLM have liquidated $531,570 worth of short positions from a total of $711,230 in liquidations over the past four hours. This indicates a strong bullish sentiment, suggesting that bulls are currently dominating the asset, with the potential for additional short liquidations in the near term.
Current major liquidation zones are identified at $0.356 on the lower end and $0.383 on the upper side. Traders appear to be over-leveraged at these levels, as shown by the XLM exchange liquidation map. Should the bullish sentiment persist and the price ascend to $0.383, nearly $3.48 million worth of short positions could be liquidated. On the flip side, if sentiment shifts and the price drops to $0.356, approximately $8.62 million worth of long positions may face liquidation. These figures underscore the bulls’ confidence that XLM’s price will not dip below the $0.356 threshold.
XLM Technical Analysis and Future Price Predictions
Expert technical analysis portrays XLM as bullish, having broken out from a bullish flag and pole price action pattern on the daily chart. However, the breakout alone does not confirm its long-term success or a possible fakeout. Should XLM surpass this pattern and close a daily candle above the $0.38 mark, there is a strong likelihood that the asset could ascend by 60% to reach the $0.60 level in the future.
Conversely, if XLM fails to sustain its 24-hour gain and closes a daily candle below $0.33, it may experience a 30% decline, potentially reaching the $0.218 mark. These potential outcomes highlight the dynamic nature of XLM’s market behavior and the importance of monitoring ongoing price trends.
As market conditions continue to evolve, it is crucial for traders and investors to stay informed about XLM’s price movements and underlying market dynamics. By keeping a close watch on these factors, one can make more informed decisions about their investment strategies concerning XLM and the broader cryptocurrency market.
