coinpedia.org
-
$XLM's price could surge by 30% to reach its 52-week high of $0.636 if it closes a daily candle above the $0.465 mark.
-
On-chain metrics reveal that exchanges have recorded an inflow of $36.36 million worth of $XLM.
-
Substantial inflow onto exchanges indicates a potential sell-off by long-term holders and has raised concerns.
$XLM, the native token of Stellar, has experienced a significant 40% surge in the past three days of January 2025. This remarkable price increase within such a short period has drawn the attention of prominent investors and traders in the crypto space.
Profit Booking in $XLM?
However, concerns are now rising as some investors appear to be continuously dumping $XLM onto exchanges, according to on-chain analytics firm CoinGlass. Data from spot inflow/outflow reveals that exchanges have recorded a substantial inflow of $36.36 million worth of $XLM tokens when the altcoin skyrocketed.
This substantial inflow onto exchanges indicates a potential sell-off by long-term holders who purchased the altcoin during last month’s dip to book profits. In the cryptocurrency landscape, inflow typically signals potential selling pressure and a possible price decline.
However, this was observed as $XLM reached one of its strongest resistance levels at the $0.45 mark. The last time the altcoin approached this level, it experienced a prolonged consolidation, and it is now exhibiting similar signs. This has raised concerns among traders and investors about whether the price will consolidate further or if a decline may occur.
$XLM’s Current Price Action
Based on recent price action, there is a strong possibility of potential consolidation near this level, as the price appears to be significantly stretched. This is a period where consolidation often attracts new investors, traders, and long-term holders, potentially strengthening $XLM for a further rally.
$XLM Price Prediction and Current Price Momentum
According to expert technical analysis, if $XLM breaks through this resistance level and closes a daily candle above the $0.465 mark, it could surge by 30% to reach its 52-week high. Otherwise, consolidation and price distribution are likely to continue.
At press time, $XLM is trading near the $0.45 mark and has experienced a price surge of over 4.5% in the past 24 hours. During the same period, its trading volume dropped by 40%, indicating lower participation from traders and investors, potentially due to price consolidation as it approaches the resistance level.