- XLM surges 25%, driven by short liquidations and bullish patterns.
- Technical indicators suggest potential gains, with resistance near $0.47 level.
Stellar’s native token, XLM, is catching the spotlight as the crypto market starts the new year with significant volatility. On January 1, 2025, XLM surged 11% in the past 24 hours, trading at $0.4253, marking a 14% increase over the last seven days. It hit a two-week high of $0.4605 earlier today, showcasing its resilience despite broader market uncertainties.
This remarkable performance can be attributed to several factors. A surge in trading volume, up by 95% during the Asian trading session, underscores growing investor interest. Data from research revealed that $531,570 worth of XLM short positions were liquidated within four hours, indicating a shift in market dynamics towards bullish sentiment.
XLM’s technical indicators align with its upward momentum. Breaking out from a bullish flag and pole pattern, the token’s trajectory hints at a potential 60% rally to $0.60, provided it closes above the critical $0.38 resistance level. However, a failure to maintain its gains could see it retrace to $0.33 or even $0.218, representing a 30% drop.
The token’s recent rally also coincides with Stellar’s expanding ecosystem. A new partnership with Fonbnk, enabling digital banking access via mobile SIM cards in Africa, highlights Stellar’s commitment to utility-driven growth. This collaboration complements its robust blockchain performance, which processed over 1.16 million smart contract invocations last month without interruptions.
Will XLM Maintain Bullish Trajectory?
Analysts point to Stellar’s doji candlestick patterns and a falling wedge breakout as signs of an impending uptrend. The Chaikin Money Flow (CMF) indicator turning positive reflects improving capital inflows, signaling rising investor confidence.
Looking ahead, XLM’s price action will be closely tied to breaking key resistance levels and maintaining its bullish trajectory. With a combination of technical strength and growing utility, Stellar appears poised for further gains, provided market conditions remain supportive.
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