Key Insights:
- The XLM price prediction appears bullish as the asset has broken out of a bullish price action pattern.
- XLM’s daily chart reveals that the price could soar by 40% if it stays above the $0.29 level.
- Despite the bullish price action, investors and long-term holders have been offloading XLM tokens, raising concerns about a potential correction.
Amid the shift in market sentiment, Stellar (XLM) appears bullish and is gaining attention from traders and experts.
Shift in Sentiment & Current Price Momentum
The past few days have been favorable for the XLM coin, as the asset has recorded a price surge of over 20%, breaking a prolonged resistance level at $0.295 and now heading in an upward direction.
At press time, XLM is trading near $0.3046 and has recorded a price surge of over 6% in the past 24 hours.
This surge in the asset’s price has begun shifting XLM’s overall sentiment. According to expert technical analysis, with its 6% upside momentum, the asset has finally broken out of a textbook-style bullish inverted head and shoulders price action pattern and is poised to turn the XLM price prediction bullish.
XLM Price Prediction
Based on recent price action and historical patterns, the XLM price prediction could remain bullish if the asset maintains its bullish trend and stays above the $0.295 level. If this happens, the XLM price could see a surge of over 40% until it reaches the $0.375 level in the coming days.
However, the XLM price prediction could fail if the asset falls below the $0.295 level and closes a daily candle below it. If this happens, the XLM price could decline to the $0.25 level.
With the recent price surge, XLM’s Relative Strength Index (RSI) has reached the 0.65 mark, indicating that the asset is still below the overbought area but has enough room to continue the ongoing uptrend.
Despite having a bullish price prediction, participation from traders and investors has plummeted. Data shows that the asset’s trading volume has dropped by 35% compared to the previous day.
Though this trading volume doesn’t have much impact on the asset’s price, it shows that the ongoing momentum of XLM’s price is weaker compared to previous days, which could lead to a price correction or consolidation.
Investors’ and Traders’ Mixed Sentiment
Data from the on-chain analytics firm CoinGlass reveals that investors and long-term holders have begun offloading tokens as the XLM price continues to soar, while traders seem to be following the current market sentiment, strongly betting on the bullish side.
Data from the spot inflow/outflow reveals that exchanges across the crypto landscape have witnessed an inflow of $3.28 Million worth of XLM tokens over the past 24 hours.
Such inflow during a trending market appears to be a potential sell-off and could cause selling pressure and further price decline.
At press time, the major liquidation levels stand at $0.2966 on the lower side (Support) and $0.3118 on the upper side (Resistance), with traders over-leveraged at these levels.
If the market sentiment remains unchanged and the price continues to soar, crossing the $0.3118 level, nearly $1.10 Million worth of short positions will be liquidated.
Conversely, if the sentiment shifts and the XLM price falls below the $0.2966 level, approximately $2.71 Million worth of long positions will be liquidated. This shows that traders are following the current market sentiment.