- Stellar (XLM) could rise 25% to reach the $0.45 level if it holds the $0.35 level.
- Currently, 65.4% of top traders on Binance have long positions, while 34.6% have short positions.
XLM, Stellar’s native token, is poised to reverse its downward momentum due to the formation of bullish price action, as reported by a prominent crypto expert.
Buy signal for XLM, says expert
On December 23, the expert shared a post on X (formerly Twitter) highlighting that a technical indicator called TD Sequential is providing a buy signal for XLM.
Source: X (formerly Twitter)
Furthermore, the expert further noted that the altcoin’s price could only rise if it holds the $0.33 level; otherwise it may fail.
XLM technical analysis and key levels
According to AMBCrypto’s technical analysis, XLM appears to be consolidating over the past four trading days in a narrow range between $0.34 and $0.39, close to a crucial support level of $0.347.
Source: tradingView
This continued consolidation will determine the future direction of XLM’s price. Based on the recent price action and historical momentum, if the altcoin maintains this support level, there is a high chance that it could rise by 25% to reach the $0.45 level.
Conversely, if it fails to hold this level and close a daily candle below $0.33, the price could fall by 33% to reach the $0.22 level in the future.
The XLM daily chart indicates that the price is overextended and significantly far from the 200 Exponential Moving Average (EMA), although it suggests that the asset remains in an uptrend.
Bullish statistics in the chain
In addition to this bullish outlook, long-term holders and traders have begun to show interest in the token as it approaches a key support level, according to on-chain analytics firm Coinglass.
Data from the XLM spot inflow/outflow statistics shows that exchanges experienced a significant outflow of $6.5 million in
In addition to the participation of long-term holders, traders have shown strong bullish market sentiment.
Currently, the long/short ratio for Binance’s XLMUSDT pair stands at 1.87, with a ratio above 1 indicating bullishness. Data further shows that 65.4% of top traders on Binance currently hold long positions, while 34.6% hold short positions.
Read Stellar’s [XLM] Price forecast 2024–2025
When all these on-chain metrics are combined with technical analysis, it appears that the bulls are currently dominating the asset and could maintain control to hold the $0.35 level in the future.
At the time of writing, XLM was trading around $0.358 and witnessed a 3% decline in the last 24 hours. During the same period, trading volume fell 19%, indicating reduced participation from traders and investors amid market uncertainty.
