Despite the ongoing market turmoil, $XLM , the native token of Stellar Lumen, is making its mark by challenging the overall cryptocurrency 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 XLM price increasing?
With this impressive rally, XLM is currently trading at around $0.37. However, this remarkable rally began just before the Asian trading session. Meanwhile, this rally has attracted more traders and investors, leading to a 95% increase in trading volume over the same period.
The underlying reason for this surge is XLM’s bullish price action and the liquidation of millions of dollars worth of short positions, according to a report by analytics firm Coinglass.
Liquidate short positions
Data shows that $XLM traders have liquidated $531,570 worth of short positions out of a total of $711,230 worth of liquidations in the past four hours. This suggests that bulls are currently dominating the asset and are likely to continue liquidating shorts in the coming hours.
As of now, the main liquidation zones are $0.35 on the bottom and $0.38 on the top, with traders using excessive leverage at these levels, according to the XLM exchange liquidation map.
Based on the data, if the sentiment does not change and the price rises to $0.38, nearly $3.48 million worth of short positions will be liquidated. Conversely, if the sentiment changes and the price falls to $0.35, approximately $8.62 million worth of long positions will be liquidated.
This data shows that bulls are betting on the upside as they believe that the price of $XLM will not fall below $0.35.
XLM Price Prediction
According to the expert’s technical analysis, XLM looks bullish as it has broken out of a flag price pattern and a bullish extreme on the daily time frame. However, the breakout itself does not confirm whether it is successful or a fakeout.
Based on the recent price action and historical bullish momentum, if XLM breaks out of the pattern and closes the daily candle above $0.38, there is a high chance that the asset will surge 60% to $0.60 in the future.
In addition to this bullish outlook, if XLM fails to maintain its gains over the 24 hours and closes the daily candle below $0.33, the price could drop 30% to $0.21.