XLM, the native token of Stellar Lumens, has been defying the overall market trends in the crypto space, outperforming major players like Bitcoin, Ethereum, and Solana. As of January 1, 2025, XLM has shown an impressive 11% gain in the past 24 hours, leading the market with its upward momentum.
The surge in XLM’s price has seen the token trading near $0.375, with a significant increase in trading volume. This upward trend began ahead of the Asian trading session and has attracted a surge of interest from traders and investors.
One potential reason for this rally is the liquidation of millions of dollars worth of short positions, indicating a shift in market sentiment towards bullishness. Data from on-chain analytics firm Coinglass revealed that traders have liquidated $531,570 of short positions out of a total of $711,230 over the past four hours. This suggests that bulls are currently dominating the asset and could lead to further short liquidations in the near future.
The XLM exchange liquidation map highlights major liquidation areas at $0.356 and $0.383, with traders being over-leveraged at these levels. If the price continues to rise and reaches $0.383, nearly $3.48 million worth of short positions could be liquidated. Conversely, a decline to $0.356 could result in approximately $8.62 million worth of long positions being liquidated.
The data indicates a strong bullish sentiment among traders, with a belief that XLM’s price will not drop below the $0.356 mark. Technical analysis also supports this outlook, with XLM breaking out from a bullish flag and pole pattern on the daily timeframe. If the token successfully breaches the $0.38 mark and closes a daily candle above it, there is a possibility of a 60% surge to reach $0.60 in the future.
However, failure to maintain the current gains and a daily close below $0.33 could lead to a 30% drop to the $0.218 mark. Overall, XLM’s price action and market dynamics indicate a bullish trend, with potential for further upside if current momentum is sustained.