Analyzing the Potential for Stellar [XLM] to Reach $0.60: Examining Key Levels

Stellar (XLM) has been attracting attention from both traders and investors, thanks to its impressive performance in the last 24 hours.

The surge in XLM’s value today is likely attributed to its price movement and the backing it received from traders.

As of the latest update, XLM was hovering around $0.355 following an 8.5% price increase over the past day. The surge in trading volume indicated a heightened interest from both investors and traders, with a 55% spike recorded.

Analysis of XLM’s Technical Aspects and Future Thresholds

Based on analysis by CryptoCrypto, a descending triangle formation was observed in XLM’s daily chart. The current price movement suggests a potential breakout from this pattern as the asset enters a phase of narrow consolidation.

Furthermore, the altcoin exhibited a bullish pin bar candlestick pattern near the support level’s bottom, hinting at a potential reversal in prices.

Recent price trends and historical momentum point towards a scenario where breaking out of the current pattern and closing a daily candle above $0.371 could lead XLM to surge by 62%, eventually reaching the $0.60 mark in the upcoming days.

Presently, XLM is trading above the 200-day Exponential Moving Average (EMA) on a daily basis, indicating a sustained uptrend for the digital asset.

Increasing Open Interest and Critical Liquidation Zones

Data from the on-chain analytics platform Coinglass highlighted an 18% rise in XLM’s Open Interest (OI) within the past day. This spike indicated a growing interest among traders to establish new positions, reflecting a shift in sentiment towards XLM.

As of the latest data, the major liquidation levels were noted to be around $0.339 on the lower end and $0.361 on the upper end, with traders exhibiting high leverage at these thresholds, as per Coinglass.

At these levels, traders seemed to have taken equal long and short positions. If XLM’s price hits these levels, approximately $3.12 million worth of long and short positions could face liquidation.

Therefore, while the sentiment surrounding XLM appears bullish, a breakthrough above the $0.361 level is crucial to observe a significant upward trend in prices.