Stellar (XLM) prices demonstrate uncertainty amid the formation of a bearish flag. Analyses and data indicate contradictions in trader sentiment.
Bearish Flag Formation on Daily Chart
Analyst Ali (@ali_charts) suggested on social media that XLM could reach $0.378 if the current flag resolves downward. The structure emerged after a steep fall from the $0.465 level, creating the flagpole that supports this bearish pattern.
Derivatives Data Reflects Divided Sentiment
The derivatives market shows notable shifts as trading volume fell 38.77% to $582.97M. Open interest also declined 6.60% to $348.45M, suggesting a reduction in speculative positioning.
The 24-hour long/short ratio stands at 0.9662, indicating a slight preference for shorts. However, on Binance, the long/short ratio for accounts is 1.2691, while top trader positions reach 1.5579, pointing toward bullish conviction.
Liquidations Add Bullish Pressure
Liquidation data highlights a skew that favors potential upside. In the last 24 hours, total liquidations reached $430.26K, with shorts losing $332.80K compared to $97.45K for longs.
This heavier liquidation of shorts indicates that upward moves forced traders to exit bearish bets.
The analysis of Stellar (XLM) prices reveals a complex interplay of bearish and bullish signals. The breakout expectation at the $0.378 level emphasizes current instability, while liquidation data point to possible bullish pressure.
