$XLM Price Surge: A $36 Million Inflow Sparks Caution for January 4
Stellar’s native token, $XLM , has witnessed a remarkable 40% increase in price during the first three days of January 2025, drawing significant attention from both seasoned traders and major investors. The surge has raised the question of whether the bullish trend is sustainable or if profit-taking by early holders could trigger a potential market pullback.
Rising Inflows: A Sign of Potential Profit-Taking?
On-chain analytics provider CoinGlass has highlighted a concerning trend, noting a hefty $36.36 million worth of $XLM tokens flowing into exchanges as prices surged. This influx of tokens is often associated with selling pressure, suggesting that long-term holders, who accumulated XLM during the previous dip, may now be looking to lock in profits. Historically, such inflows often signal the potential for a price decline, as increased selling activity can dampen bullish momentum.
Resistance at $0.45: Consolidation or Decline Ahead?
XLM has reached a critical resistance level at $0.45, and it’s showing signs of a similar behavior to previous price movements near this mark, where the token entered a period of consolidation. This level has proven to be a strong barrier, and it’s unclear whether XLM will break through or if it will experience a prolonged consolidation phase. If the price manages to close above $0.465, it could trigger a further rally, with some analysts forecasting a 30% potential upside, pushing it toward its 52-week high.
What’s Next for XLM?
At the time of writing, XLM is holding near the $0.45 threshold, showing a modest 4.5% increase over the past 24 hours. However, its trading volume has decreased by 40%, suggesting reduced market participation as investors weigh their options near this key resistance zone. Whether this consolidation leads to a continuation of the uptrend or a pullback remains to be seen, but traders are closely monitoring the situation for signs of the n
ext big move.
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