XLM Surges 8.50% as Bullish Sentiment Drives 30% Rally Potential

Stellar's XLM has finally broken out of its prolonged bearish trend, which began in November 2024. During this downtrend, the asset recorded a 65% price decline while forming a bearish channel pattern. This breakout has not only paused XLM’s price decline but also opened the path for a massive upside rally. At press time, XLM traded near $0.284 after recording an 8.50% surge in the past 24 hours.

Traders and investors have been strongly betting on the bullish side. At press time, the Binance XLMUSDT Long/Short ratio stood at 1.89, signaling strong bullish sentiment. In fact, 65.37% of top traders on Binance held long positions, while only 34.63% held shorts. This indicates a significant shift in market sentiment towards a bullish outlook for XLM.

Coinglass’s XLM Exchange Liquidation Map reveals that traders have been heavily over-leveraged at $0.2558 on the lower side (support) and $0.285 on the upper side (resistance), both of which are on the verge of liquidation. At these levels, traders have built $6.37 million worth of long positions near the support and $1.63 million worth of short positions near the resistance over the past seven days. Such over-leveraging suggests that traders are confident in the asset's potential for a significant price increase.

Spot Inflow/Outflow data pointed to an outflow of $1.19 million worth of XLM from exchanges in the past 24 hours. Such outflow from exchanges indicates potential accumulation, which could lead to buying pressure and an upside rally. This accumulation suggests that investors are holding onto their XLM, anticipating a future price increase.

According to technical analysis, XLM appears bullish and is poised for a massive upside rally. On the daily time frame, the asset has broken out of a descending channel pattern and closed a daily candle above the key level, confirming this breakout as successful. Based on the recent price action and historical pattern, if the XLM price holds above $0.275, there is a strong possibility it could soar by 30% until the asset price reaches the $0.375 level in the future. This bullish thesis will only hold if the XLM price remains above the $0.26 level, otherwise, it may fail.