Stellar’s native token, XLM, has seen a remarkable 40% surge in value over the past three days of January 2025. This sudden price increase has caught the attention of many investors and traders in the cryptocurrency space.
Despite the positive price movement, there are concerns about profit booking in XLM. Data from on-chain analytics firm CoinGlass shows that there has been a substantial inflow of $36.36 million worth of XLM tokens onto exchanges during the recent surge. This influx suggests that long-term holders may be selling off their XLM to lock in profits, potentially leading to selling pressure and a price decline.
The price of XLM has reached a significant resistance level at $0.45, prompting worries about a possible consolidation or even a decline. The last time XLM approached this level, it went through a period of consolidation, and similar patterns are now emerging. This has left traders and investors wondering about the future price movement of XLM.
Looking at the current price action, it appears that XLM may consolidate near the $0.45 level as the price seems stretched. Consolidation periods often attract new investors and strengthen the asset for a potential rally.
Technical analysis suggests that if XLM can break through the $0.465 resistance level and close above it, the token could see a 30% surge to reach its 52-week high. However, if the resistance holds, consolidation and price distribution are likely to continue.
As of now, XLM is trading around $0.45 and has seen a 4.5% price increase in the last 24 hours. However, trading volume has dropped by 40%, indicating lower participation from traders and investors possibly due to the approaching resistance level.
Overall, the future price movement of XLM remains uncertain as it navigates the current resistance level. Traders and investors will be closely watching to see if XLM can break through and continue its upward trajectory or if it will consolidate further.