Stellar [XLM] Surges by 608% in Just 21 Days – The Next Key Short-Term Zone Revealed

Stellar [XLM] Experiences a Remarkable 608% Surge in Just 21 Days – Discovering the Next Critical Short-Term Region

After reaching all-time highs over the weekend, Stellar [XLM] saw a slight 25% dip. Nonetheless, the token remains significantly up by 390.5% compared to three weeks ago, primarily driven by the bullish momentum of Bitcoin [BTC].

In January 2018, Stellar hit a peak at $0.8756, with the Fibonacci extension levels indicating $0.766 and $0.975 as potential long-term bullish targets.

Currently, the altcoin seems to be in a phase of retracement and could potentially retreat towards $0.363 or even lower.

Rising Demand for XLM

Between the 4th of November and the 24th of November, Stellar experienced an impressive surge of 608% in just 20 days, showcasing phenomenal returns for an asset with a market cap of $14.3 billion. The speed at which the rally unfolded was also exceptional.

The Chaikin Money Flow (CMF) stands at +0.17 and has remained above +0.15 since the 6th of November. Such sustained levels above +0.05 indicate significant capital inflows, further boosting confidence in the asset.

Trading volume soared and reached a peak of $2.83 billion on Sunday, reflecting strong market activity. While the Money Flow Index (MFI) has not signaled a bearish divergence on the daily chart, the ongoing pullback suggests the MFI may drop as XLM retraces towards crucial Fibonacci support levels.

Potential Impact of Long Liquidations on Prices

An analysis of liquidation map data highlighted a cluster of long liquidation levels in the $0.46-$0.473 range, surpassing nearby short liquidation clusters in magnitude. This imbalance suggests a probable downturn for XLM towards $0.46 in the near future.

Looking ahead, two key liquidity zones from the past fortnight could influence price movements. The first liquidity pool near market prices ranged from $0.533 to $0.55, while a significant cluster was observed around $0.4. Additionally, the $0.463 level presents itself as a short-term support level where Stellar may find some rebound potential.

Disclaimer: The information provided should not be construed as financial, investment, trading, or any form of advice and reflects the personal opinion of the writer.