- Potential Liquidations Could Trigger Further Price Volatility
- On-Chain Metrics Suggest Slight Positive Outlook
Stellar (XLM) has recently shown signs of potential downside movement following a breakdown from a bearish double-top pattern. This technical indicator implies that the price of XLM could be about to plummet shortly.
Potential Liquidations Could Trigger Further Price Volatility
Data from on-chain analytics provider CoinGlass shows specific liquidation thresholds that may affect the XLM price. Major liquidation levels are near $0.091 and $0.0948, and the high leverage used by traders at these levels could lead to liquidations with even small price changes. For instance, if XLM declines to $0.091, around $280,000 worth of long positions are exposed to liquidation. On the flip side, if the price rises to $0.0948, $170,000 in short positions could be closed out. This situation is particularly risky given the fragile market sentiment.
On-Chain Metrics Suggest Slight Positive Outlook
Besides liquidation data, another important on-chain indicator is the Open Interest (OI)-weighted funding rate, standing at 0.0019%. This positive rate might imply that traders expect an upward price movement despite the general bearish market. However, the total Open Interest of XLM has reduced by 2.3% in the last 24 hours, indicating declining trader interest. Currently, Stellar (XLM) trades around $0.0938, after experiencing a modest decline of 0.2% over the past 24 hours.
Despite current bearish sentiments, some on-chain metrics suggest the possibility of price increases. However, traders should exercise caution and await market movement confirmation.
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