Stellar [XLM] up 608% in 21 days – THIS is the next key short-term zone

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  • The daily XLM trading volume had surpassed $2.8 billion last Sunday.
  • The token could be entering a phase of retracement.

As a seasoned analyst with over two decades of market observations under my belt, I must admit that the Stellar [XLM] surge has been nothing short of exhilarating. The daily trading volume surpassing $2.8 billion is a testament to the growing interest in this token. However, the 25% drop since the local highs could signal a phase of retracement.

Over the past weekend, Stellar [XLM] dropped about 25% from its local highs. However, even with this decline, it’s currently up an impressive 390.5% compared to its position three weeks ago, primarily due to Bitcoin‘s [BTC] surge in positivity.

The peak price for Stellar reached $0.8756 back in January 2018, but according to Fibonacci extensions, potential future highs could be around $0.766 and possibly $0.975 as possible long-term bullish objectives.

However, the altcoin is entering a retracement phase, and could fall to $0.363 or deeper.

XLM demand goes through the roof

Over the span of just twenty days, from the dip on the 4th of November to the peak on the 24th, Stellar experienced a noteworthy surge of approximately 608%.

For a $14.3 billion market cap asset, these returns are phenomenal. Their pace has been extraordinary as well.

The Capital Movement Facility (CMF) currently stands at 0.17, and it’s been over 0.15 since November 6th. This situation is quite noteworthy because values exceeding 0.05 typically suggest substantial foreign investments, making this an impressive occurrence.

The trading volume also rose higher and higher, peaking at $2.83 billion on Sunday.

On the daily chart, the Money Flow Index hasn’t shown a bearish divergence so far. This week’s drop suggests that the index might decrease further, potentially reaching lower levels as XLM approaches significant Fibonacci support points.

Long liquidations could drag prices lower

As an analyst, I observed a concentration of liquidation points in the vicinity of $0.46 to $0.473. The size of these long liquidations significantly surpassed the nearby groups of short liquidations in the area.

Therefore, it is likely that XLM experiences a dip to $0.46 in the coming days.

Read Stellar’s [XLM] Price Prediction 2024-25

Over the past fortnight, a heatmap showing potential liquidations highlighted two important areas likely to impact the near future. The first, a liquidity cluster close to current market values, stood around $0.533, while extending up to approximately $0.55.

In the southern region, another group of similar size, often referred to as a liquidity cluster, can be found near the $0.4 mark. This specific level at $0.463 is attracting short-term interest and there’s a possibility that Stellar might experience a rebound from this point.

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2024-11-29 07:03