Nov 29, 2024
6thTrade
Stellar (XLM) has experienced an extraordinary 608% rally over the past 21 days, with trading volumes peaking above $2.8 billion last Sunday. However, after reaching local highs, XLM has pulled back by 25%. Despite this, the token remains up 390.5% from its price three weeks ago, fueled by Bitcoin's bullish performance.
Key Short-Term Retracement Zones
While Stellar has shown impressive gains, it is now entering a phase of retracement. The $0.463 and $0.4 levels are critical short-term bearish targets for XLM. These levels could act as potential support zones for a rebound, although the token could fall even deeper.
Long-Term Bullish Targets
Looking ahead, the Fibonacci extension levels indicate that XLM's next long-term bullish targets lie between $0.766 and $0.975. These levels represent key resistance points, based on past market behavior. However, before reaching these levels, XLM may experience further consolidation and retracement.
Strong Demand and Capital Inflows
The rally in XLM has been driven by significant demand, with the Chaikin Money Flow (CMF) currently at +0.17, indicating strong capital inflows. This has been sustained since early November, and the Money Flow Index (MFI) has not yet signaled a bearish divergence. The increase in trading volume, which peaked at $2.83 billion, further underscores the strong momentum behind the token.
Liquidation Zones and Potential Dip
The liquidation map suggests that XLM could experience a dip to the $0.46-$0.47 range in the coming days. A concentration of long liquidations around this zone could trigger further price drops, although the $0.463 level is a potential short-term support zone for a bounce.
Additionally, the liquidation heatmap points to two significant liquidity clusters: one near the $0.53-$0.55 range and another further down at $0.4. These zones could play a pivotal role in shaping XLM’s price action in the short term.
Conclusion: What’s Next for XLM?
While Stellar’s price has surged dramatically, the altcoin is likely to face some retracement in the short term. The key levels to watch for potential support are around $0.463 and $0.4. If the demand continues and the market structure holds, XLM could find a strong base at these levels before resuming its bullish trend toward the longer-term targets of $0.766 to $0.975. However, traders should monitor the liquidation heatmap and volume indicators for further clues on price action.