Bittime - Stellar (XLM) is attracting attention with its latest price movement, driven by bullish sentiment amidst a consolidating crypto market.
With the significant price surge, speculation has emerged whether XLM could reach its all-time high (ATH) in the coming weeks.
Current Stellar Price Trends
In the past month, XLM has risen more than 80%, reflecting the recovery of the broader crypto market.
Despite consolidating in the $0.40 to $0.47 range over the past week, Stellar is showing signs of maintaining bullish momentum. Currently, XLM is trading at $0.422, down slightly by 1% from the previous day.
Over the past year, Stellar's price has surged 252%, supported by a crypto market rally led by Bitcoin, which has remained stable above $103,000.
These factors suggest that if momentum continues, XLM could continue its upward trajectory.
Read also: XRP vs XLM: Fundamental and Technical Comparison
Bearish Sentiment and Funding Levels
Interestingly, the XLM funding rate has fallen sharply, indicating bearish sentiment and an increase in short positions. A negative funding rate often indicates that traders are anticipating a price drop.
However, this condition can trigger short squeeze, where a sudden price spike forces short traders to close their positions, which actually drives the price higher.
Investors monitor this dynamic closely, as excessive short interest has historically triggered sharp price reversals.
Potential short squeeze adding a layer of uncertainty, making traders alert for signs of volatility that could impact XLM price movements.
Stellar Technical Analysis
From a technical perspective, XLM appears to be in an accumulation phase, which indicates a possible breakout to the upside.
Analysts have identified a pattern that suggests this cryptocurrency is going through a liquidity testing stage.
This analysis suggests that XLM may have completed its basic formation process and is now poised for growth as buying pressure increases.
The next phase could take Stellar closer to the previous ATH of $0.938, reached in January 2018.
XLM Prospect
Stellar price movement shows cautious optimism. Although this cryptocurrency shows potential to break out of the consolidation phase, the path to a new ATH depends on market conditions, volatility and continued buying momentum.
The next few weeks will be crucial as XLM continues to test key resistance levels. If bullish sentiment persists and occurs short squeeze, Stellar has a chance to challenge its ATH.
FAQ Stellar (XLM)
What is XLM Coin?
Stellar Lumens (XLM) is the native digital asset of the Stellar network. The Stellar Network itself is a decentralized blockchain platform designed to facilitate cross-border transactions quickly, safely and at low costs.
Simply put, XLM functions as “fuel” to run transactions on the Stellar network, much like gas for a car.
What year was Stellar launched?
The Stellar Network was launched in 2014. However, its roots can be traced back to the Ripple project, where several of Stellar's key developers were previously involved.
Stellar Network What?
Stellar is an open blockchain network. This means anyone can participate in this network, be it an individual, business or organization.
The Stellar Network uses distributed consensus to validate transactions, so no single entity controls the network.
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Reference
Coingape Staff, Will Stellar Price Hit ATH This Week?, accessed December 23, 2024
Author: SD
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