XLM is very close to starting a new uptrend by breaking out of the $0.361 resistance level, and traders are currently at a critical turning point, with significant leverage taking place between the lower support at $0.339 and the upper resistance at $0.361.

According to COINOTAG, “XLM’s Open Interest (OI) has increased by 18% in just 24 hours, indicating a significant shift in trader sentiment.”

This article provides a detailed analysis of XLM’s critical price levels and strong bullish momentum. The cryptocurrency aims to break through the key resistance level and enter a new uptrend.

XLM’s Technical Status and Price Action Analysis
Recent analysis shows that XLM has formed a descending triangle formation on the daily chart, which could trigger significant price action. As XLM enters a consolidation phase, traders are watching for a breakout of this formation, which could signal a potential rally.

A bullish pin bar candlestick forming near support indicates a reversal is likely. If XLM breaks out and closes above $0.371, analysts are predicting a 62% near-term rally, which points to a target of $0.60. Additionally, XLM is trading above the 200-Day Exponential Moving Average (EMA) on the daily chart, reinforcing that the overall uptrend is underway and encouraging traders to watch this critical resistance level closely.

Open Interest and Liquidation Strategies
The latest data from Coinglass shows that XLM’s Open Interest has increased by 18% in the last 24 hours, indicating a notable shift in trader sentiment. The increasing Open Interest indicates that traders are showing increased interest in the Stellar market by opening new positions.

XLM has significant liquidation thresholds at $0.339 and $0.361. The excessive leverage observed at these levels is a critical area for investors to prioritize risk management. In current market conditions, traders are seen opening both long and short positions at these levels. If the price of XLM approaches these liquidation levels, it is anticipated that approximately $3.12 million worth of positions could be liquidated, which could increase market volatility.

Overall, sentiment for XLM is cautiously optimistic, with the price moving past the $0.361 level critical for upward momentum.