Stellar Lumens' rally is fueled by major capital injections and thin order books enabling rapid upward momentum.
XLM's price broke through low-volume zones, allowing accelerated movement due to minimal trading resistance.
Historical trends suggest XLM could reach $2.72 by 2025, supported by Fibonacci levels and an ascending price channel.
Stellar Lumens (XLM) has recently witnessed a sharp price surge. Analyst Egrag Crypto highlights specific factors contributing to this momentum. These factors include major capital inflows, order book dynamics, and low-volume trading areas that have played a pivotal role in the price movement.
https://twitter.com/egragcrypto/status/1861350388160749853
Capital Inflows and Order Book Dynamics Propel XLM
Significant capital injections into XLM have created upward momentum, suggesting increased investor interest and market demand. The influx of funds coincided with shifts in buying and selling activity within a relatively thin order book. Large buy orders pushed the price higher, amplifying the rally. This activity demonstrates how a thin order book can amplify price movements due to reduced resistance from sell-side liquidity.
Low-Volume Zones Accelerate Price Movement
Stellar Lumens’ price benefited from breaking through low-volume areas identified on the Volume-Range Profile. These zones, marked by minimal trading activity, act as regions of reduced resistance. When prices cross these areas, they tend to move quickly due to a lack of significant order flow to counteract the momentum.
Notably, low-volume nodes (LVNs) on the volume histogram confirmed the presence of these zones. This technical structure allowed XLM to move efficiently upward. Additionally, historical data suggests a tendency for XLM's price to align with movements in XRP, adding another layer to its trajectory.
Historical Trends and Future Projections
Egrag Crypto also references past price surges to provide context for the current rally. In 2017, XLM soared over 3,800% during a pivotal breakout, and between 2020 and 2021, it achieved another significant rally of over 3,000%. Key Fibonacci retracement levels now suggest potential future resistance points at $1.59, $2.25, and $3.72.
Source: Egrag Crypto
The volume profile indicates strong support zones between $0.40 and $0.50, while historical highs near $0.80 and $1.00 may serve as immediate resistance. A green vertical projection suggests the possibility of XLM reaching $2.72 by February 2025, reflecting historical growth patterns and a sustained adherence to the ascending price channel.
