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Analysis

Stellar [XLM] up 608% in 21 days – THIS is the next key short-term zone

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The $0.463 and $0.4 levels are short-term bearish price targets for XLM.
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Stellar [XLM] up 608% in 21 days - THIS is the next key short-term zone
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  • The daily XLM trading volume had surpassed $2.8 billion last Sunday.
  • The token could be entering a phase of retracement.

Stellar [XLM] was 25% lower than the local highs it reached over the past weekend. Despite this pullback, the token is still 390.5% higher than where it was three weeks ago, spurred higher by Bitcoin’s [BTC] bullishness.

The Stellar all-time high lies at $0.8756, set in January 2018. The Fibonacci extension levels outline the $0.766 as $0.975 as the next long-term bullish targets.

However, the altcoin is entering a retracement phase, and could fall to $0.363 or deeper.

XLM demand goes through the roof

XLM 1-day Chart

Source: XLM/USDT on TradingView

From the lows of the 4th of November to the highs posted on Sunday the 24th of November, Stellar rallied a respectable 608% in 20 days.

For a $14.3 billion market cap asset, these returns are phenomenal. Their pace has been extraordinary as well.

The CMF is at +0.17 and has been above +0.15 since the 6th of November. This is another remarkable occurrence, as values above +0.05 are enough to indicate significant capital inflows.

The trading volume also rose higher and higher, peaking at $2.83 billion on Sunday.

The Money Flow Index has not signaled a bearish divergence on the daily chart yet. The pullback this week meant that the MFI is likely to fall lower as XLM retraces toward the key Fibonacci support levels.

Long liquidations could drag prices lower

XLM Liquidation Map

Source: Coinglass

The liquidation map data outlined a cluster of liquidation levels around the $0.46-$0.473 zone. The magnitude of these long liquidations outweighed nearby short liquidation clusters.

Therefore, it is likely that XLM experiences a dip to $0.46 in the coming days.

XLM Liquidation Heatmap

Source: Coinglass

Read Stellar’s [XLM] Price Prediction 2024-25

The liquidation heatmap of the past two weeks outlined two key zones that could be influential in the coming days. The closer liquidity pool to market prices was at $0.533 and extended up to $0.55.

To the south, a similarly sized liquidity cluster lay around the $0.4 mark. The $0.463 level is also a magnet in the short-term that Stellar could see a bounce from.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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