Following a prolonged sideways movement, Stellar's (XLM) price is showing signs of potential growth, particularly after breaking a bullish flag pattern amidst rising trading volume and positive trader sentiment.
Bullish Flag Structure
The XLM price broke out of a classic bullish flag pattern, which is formed when prices make a sharp move up (the pole) and then consolidate in a downward-sloping range (the flag) before breaking out again in the same direction. The XLM price chart indicates that the height of the original flagpole is about 133%, suggesting a target of reaching $1 if key technical indicators continue to hold strong.
Short-Term Prospects and Short Squeeze
According to the latest liquidation map, many short positions have already been wiped out; however, over $52 million in XLM short contracts remain active. This creates potential fuel for increased prices. When the XLM price rises rapidly, traders betting against it are forced to buy back their positions, pushing prices higher. If bulls maintain pressure and spot buying increases, XLM could trigger another liquidation cluster, possibly helping push prices past $0.52.
Trading Volume and Trader Sentiment
According to the Binance long/short ratio, almost 60% of trader accounts are currently long on XLM. This indicates a growing bullish sentiment among retail traders. As long as the XLM price stays above $0.46 and buying volume is maintained, a move towards $0.52 seems likely. However, short-term prospects could be invalidated if the price dips below $0.36.
With current upward momentum and positive indicators in the market, XLM could be on the verge of significant growth, and monitoring key price levels will be crucial for traders going forward.
