Stellar (XLM) has recently emerged from a five-month downturn that began in November 2024, during which the asset experienced a significant price decline of 65%. This breakout marks a crucial shift in momentum, potentially signaling the start of a long-awaited rally.
As of now, XLM is trading at approximately $0.284, reflecting an 8.50% increase within a 24-hour period. The trading volume has also surged by 25%, indicating heightened trader and investor engagement in the market.
Current on-chain metrics support a bullish outlook, as a significant majority of traders are placing long bets on XLM. The Long/Short ratio for XLM on Binance currently stands at 1.89, which suggests a strong bullish sentiment.
Specifically, 65.37% of top traders are holding long positions, compared to just 34.63% with short positions. This trend indicates a growing confidence among traders that XLM’s price will continue to rise.
Recent data from Coinglass’ XLM Exchange Liquidation Map shows that traders have accumulated $6.37 million in long positions near the support level of $0.2558, and $1.63 million in short positions near the resistance level of $0.285. Additionally, a notable outflow of $1.19 million worth of XLM from exchanges in the past 24 hours suggests a trend toward accumulation, which could contribute to further upward pressure.
From a technical analysis perspective, XLM appears poised for a significant rise. The asset has successfully broken out of a descending channel and closed above a key resistance level.
If XLM maintains its price above $0.275, analysts predict it could rally by approximately 30%, potentially reaching the $0.375 mark. However, this bullish outlook hinges on the price staying above $0.26, as any dip below could undermine the current positive sentiment.