XLM Trading Insights

If this key level is maintained, there may be a 25% increase.

According to a well-known cryptocurrency expert, due to the formation of a bullish price action, the native token XLM of Stellar Lumens is expected to reverse its downward trend.

Experts say XLM's buy signal

On December 23, the expert shared a post on X (formerly Twitter), emphasizing that a technical indicator called TD Sequential is issuing a buy signal for XLM.

In addition, experts further pointed out that the price of altcoins can only rise if it maintains the level of 0.33 US dollars; otherwise, it may fail.

XLM Technical Analysis and Key Levels

According to AMBCrypto's technical analysis, XLM seems to have been consolidating within a narrow range between $0.34 and $0.39 over the past four trading days, approaching a key support level at $0.347.

This continued consolidation will determine the future direction of XLM prices. Based on recent price trends and historical momentum, if the altcoin holds this support level, it is very likely to surge by 25% to reach the $0.45 level.

On the contrary, if the daily chart fails to maintain this level and closes below $0.33, the price may drop by 33% in the future to reach the level of $0.22.

The daily chart of XLM shows that the price is stretched too far from the 200 exponential moving average (EMA), indicating that the asset is still in an uptrend.

Bullish on-chain indicators

According to the data from the on-chain analysis company Coinglass, in addition to this bullish outlook, long-term holders and traders have started to show interest as the token approaches a key support level.

The data of the XLM spot inflow/outflow indicator shows that the exchange has experienced a large outflow of XLM worth 6.5 million US dollars, indicating increased buying pressure, potential upward momentum, and ideal buying opportunities.

In addition to the participation of long-term holders, traders also show a strong bullish market sentiment.

Currently, the long/short ratio of Bina's XLMUSDT pair is 1.87, and a ratio higher than 1 indicates a bullish sentiment. Further data shows that 65.4% of top traders on Bina currently hold long positions, while 34.6% hold short positions.