24 January XLM Price Prediction: Understanding the Dynamics of XLM Liquidation Pressure
Stellar Lumens (XLM) experienced strong liquidation pressure on short positions, indicating that a squeeze may be on the horizon, per AMBCrypto’s analysis. The heatmap actually showed a building of shorts at higher prices, suggesting that these liquidations could be triggered by any abrupt increase in XLM’s price.
Notably, XLM‘s important liquidation thresholds got closer to $0.45 and above, indicating possible bearish places where prices could rise. Short sellers may be caught off guard by this conflict between current bearish bets and possible market surges, which might result in sharp price increases if those levels are broken.
The Battle Between Bulls and Bears in XLM Trading
This instance demonstrated the erratic character of cryptocurrency markets, where sentiment may change significantly and quickly impact trader positions and prices. Furthermore, XLM showed positive emotion as its buying pressure significantly outpaced its selling pressure. In November, XLM peaked as purchasing pressure briefly exceeded selling pressure.
But as selling pressure started to gradually take over once more, suggesting a crucial resistance level at $0.55, the trend appeared to be turning around. It’s a crucial combat level for bulls and bears because this +25% increase could hurt bears. Bears may be disappointed if XLM is able to break through this level and start a rally. On the other hand, a decline below the $0.398 support level could start a bigger slump.
XLM’s Momentum: Analyzing the Current Market Sentiment
The altcoin was trading at $0.4177 at the time of writing, showing a bullish trend on the monthly charts. As it approached the $0.80 resistance level, which appeared to be crucial for continuance, XLM showed a significant increase from its prior levels. If the momentum continues, the strong candles that broke above the declining resistance levels indicated the possibility of a continued upswing.
XLM may test the next significant resistance level at $0.80 if it can maintain above this trendline. Support for any reversal, though, might be found at the lower end, close to $0.33. Although traders should keep an eye out for indications of a reversal because of the high MVRV ratio, this outlook is cautiously optimistic.
For more up-to-date crypto news, you can follow Crypto Data Space.
Leave a comment