The cryptocurrency market shows signs of recovery after a decline, with Stellar (XLM) regaining its bullish momentum. In the past three days, XLM has experienced a price decline of over 18%, breaking through a crucial support level of $0.403.
XLM Bulls Back
With today's upside momentum, XLM has returned to the support level and is poised for further gains. A potential reason for this recovery is the upcoming inauguration of President-elect Donald Trump, scheduled for January 20, 2025.
XLM Technical Analysis and Upcoming Levels
According to XLM’s daily chart, traders can see an attractive 1:5.6 risk-to-reward ratio, with a stop loss at $0.38 and a target at the $0.60 mark. Technical analysis suggests a bullish inverted head-and-shoulders price pattern. If XLM closes its daily candle above the $0.415 mark, there is a strong possibility it could soar significantly.
Traders' Positions and Current Momentum
Traders are building long positions, as confirmed by on-chain analytics firm Coinglass. The major liquidation level is $0.388, where traders hold significant long positions worth $7.47 million. Another major area is $0.422, where short sellers have built positions worth over $2.09 million.
Currently, XLM is trading near $0.418 and has seen a price surge of over 4.5%. Trading volume has also increased, indicating heightened participation from traders and investors.
