Current cryptocurrency market analysis shows that Stellar (XLM) is developing a bullish formation with a key support level at $0.33.
Overview of Current XLM Situation
XLM is forming a structure indicating a potential bullish reversal, with a strong support area at $0.33. Analyst Ali identifies this area as crucial for potential accumulation ahead of a possible rise. At the time of writing, XLM is trading around $0.3618, following a 13.86% decline over the last week.
Derivatives and Trading Volume Data
Recent data indicate that the trading volume of XLM derivatives has increased by 28.34% to $422.53 million, while open interest has risen by 0.65% to $317.09 million. This suggests that new capital is entering the market. Although the long/short ratio shows balance among retail traders, larger participants exhibit a bullish tilt.
Liquidation Data and Short-Term Pressure
Liquidation data indicates that leveraged traders have faced pressure. Over the last 1 and 4 hours, short positions have been under more stress, while the 12-hour data shows $381.08K in long liquidations compared to $6.24K in shorts. This may lead to cautious trading in the near term.
Current data and analytics suggest that the $0.33 level may serve as significant support for XLM, and the bullish formation could result in potential growth if a breakout occurs above $0.47–$0.50.
