XLM trading insights: Potential 25% increase if THIS key level holds

Stellar (XLM) could soar by 25% to reach the $0.45 level if it holds the $0.35 level.
Currently, 65.4% of top traders on Binance hold long positions, while 34.6% hold short positions.

As a seasoned researcher with over a decade of experience in the crypto market, I find myself intrigued by the bullish outlook for Stellar (XLM). The technical indicators and on-chain metrics suggest a strong possibility of XLM soaring to the $0.45 level if it manages to hold the crucial support at $0.35.

According to a well-known cryptocurrency analyst, it’s expected that Stellar’s native coin, XLM, will soon shift its negative trend due to the development of optimistic market signals.

Buy signal for XLM, says expert

On the 23rd of December, an expert posted on X (previously known as Twitter) to emphasize that a technical indicator named TD Sequential was signaling a buying opportunity for XLM.

Moreover, the expert pointed out that the altcoin’s price might surge if it manages to maintain its position above $0.33; otherwise, it could potentially experience a decline.

XLM technical analysis and key levels

Based on the technical assessment provided by AMBCrypto, Stellar Lumens (XLM) has been steadily holding within a narrow band, spanning from approximately $0.34 to $0.39, and hovering close to an important support point at around $0.347, over the past four trading sessions.

As an analyst, I am confidently predicting that the current consolidation phase will significantly influence XLM’s future price trajectory. Given the recent market trends and considering its historical momentum, if XLM manages to hold its current support level, there is a substantial likelihood of it surging by approximately 25%, potentially reaching the $0.45 mark.

If the price doesn’t maintain this current level and ends the day’s trading session below the $0.33 threshold, it might drop by approximately 33%, potentially reaching the $0.22 level in the future.

Looking at the daily XLM chart, it seems the price has reached a point that’s quite extended and noticeably distant from the 200 Exponential Moving Average (EMA). However, the chart implies the asset continues to move upwards within an overall upward trend.

Bullish on-chain metrics

Besides the optimistic perspective, there’s growing attention from long-term investors and traders towards the token, given its proximity to a crucial support point, as indicated by the analytics company Coinglass in their analysis.

The data from the XLM spot inflow/outflow measurements suggest that there has been a substantial exit of approximately $6.5 million in XLM from exchanges, which could indicate growing demand, possible price increases, and a favorable moment for purchasing XLM.

Beyond just long-term investors, it’s clear that traders are also expressing a robust positive outlook on the market, indicating a bullish trend.

Presently, the long/short ratio for Binance’s XLMUSDT pair is at 1.87, suggesting a bullish trend as values above 1 indicate optimism among traders. Moreover, it appears that a significant majority of top Binance traders, approximately 65.4%, have opted to hold long positions, while around 34.6% are maintaining short positions.

Read Stellar’s [XLM] Price Prediction 2024–2025

By blending these on-blockchain indicators with traditional chart analysis, it seems that at present, the bullish sentiment is overwhelmingly strong, potentially allowing them to preserve this advantage and keep the price above $0.35 in the upcoming periods.

Currently, XLM is being exchanged around $0.358. Over the last 24 hours, its price has decreased by 3%. This price drop coincides with a reduction in trading volume by 19%. This decrease in volume suggests less involvement from traders and investors, potentially due to market instability.

2024-12-24 06:15

Buy signal for XLM, says expert

XLM technical analysis and key levels

Bullish on-chain metrics

Read More