Breaking: Major Long Liquidation on $XLM

A $3.4729K long position just got liquidated at a crucial price level of $0.4040. The liquidation marks a pivotal moment in the Stellar (XLM) market, signaling a possible shakeout or upcoming trend reversal!

What Does This Mean.

Liquidation Level: The position liquidated at $0.40791 suggests that many traders placed their stop-loss or liquidation levels just below a strong support level.

Market Sentiment: The market may have been overly bullish, and the sudden move triggered long liquidations, forcing some traders out of the game.

Volatility Alert: Such liquidations often lead to a spike in volatility as the market digests the sudden influx of liquidated orders.

Technical Analysis: Key Levels to Watch

1️⃣ Resistance:

$0.4200: A critical barrier; breaking this could lead to renewed bullish momentum.

$0.4500: A medium-term target if bulls regain control.

2️⃣ Support:

$0.4000: The nearest support. A breakdown below this could invite more selling pressure.

$0.3800: The next strong support if the decline continues.

Potential Scenarios Ahead.

1. Bullish Reversal:

If $XLM reclaims the $0.4200 level with strong volume, we could see a surge toward $0.4500.

2. Bearish Continuation:

A sustained drop below $0.4000 might lead to further liquidations, dragging the price to $0.3800 or lower.

Trading Tips.

Buy Zone: Look for accumulation near $0.3950–$0.4000.

Stop-Loss: Set at $0.3900 to manage risk.

Targets:

Short-term: $0.4200

Medium-term: $0.4500

Remember: Liquidations often create opportunities, but the market can stay irrational longer than you can stay solvent. Trade wisely.

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