Despite ongoing market uncertainty, XLM, Stellar Lumen’s native token, is making its own mark by taking on the overall crypto market, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). As of today, January 1, 2025, XLM has led the market with an 11% gain in the past 24 hours.
Why is the XLM price rising?
With this impressive upside momentum, XLM is currently trading around $0.375. However, this remarkable increase started just before the Asian trading session. Meanwhile, this momentum has further attracted traders and investors, leading to a 95% jump in trading volume over the same period.
The possible reason for this rally is XLM’s bullish price action and the liquidation of short positions worth millions of dollars, as reported by the on-chain analytics company. Mint glass.
Liquidation of short positions
Data shows that traders trading XLM have liquidated $531,570 in short positions over the past four hours out of a total of $711,230 in liquidations. This suggests that bulls are now dominating the assets and have the potential for further short liquidations in the coming hours.
Currently, the key liquidation areas are at $0.356 on the downside and $0.383 on the upside, with traders at these levels being over-leveraged, according to the XLM stock liquidation chart.
Based on the data, if sentiment remains unchanged and the price rises to the $0.383 level, almost $3.48 million worth of short positions will be liquidated. Conversely, if sentiment changes and the price falls to $0.356, long positions worth approximately $8.62 million will be liquidated.
This data shows that bulls are betting heavily on the long side as they believe the price of XLM will not fall below $0.356.
XLM technical analysis and price prediction
According to expert technical analysis, XLM appears bullish as it has broken out of a bullish flag and pole price action pattern on the daily time frame. However, the outbreak itself does not confirm whether it is successful or a fake outbreak.
Based on the recent price action and historical price momentum, if XLM breaks the pattern and closes a daily candle above $0.38, there is a high chance that the asset could rise 60% to reach $0.60 in the future.
In addition to this bullish outlook, if XLM fails to maintain its 24-hour gains and closes a daily candle below $0.33, it could fall 30% to reach $0.218.
