coinedition.com
ON-chain analytics and market intelligence platform Santiment is expecting a mini breakout potential in the price of Stellar (XLM) following a single-day gain of 8%. Santiment’s bullish outlook for XLM comes amid considerable selling pressure on the token due to the short positions placed by crypto traders.
📊 As the new week has kicked off, #Stellar is the notable asset that is showing mini breakout potential, with a +8% rise today. $XLM is an asset that has been consistently #shorted by the crowd, and liquidations could pump up the price. Also, keep an eye on $TON, $XMR, and $ARB. pic.twitter.com/ju15ghk1ek
— Santiment (@santimentfeed) September 4, 2023
Santiment took to X (formerly Twitter) earlier today to highlight the recent 8% increase in Stellar’s price. XLM went from $0.113 to as high as $0.125 earlier today, reaching a one-week high. The rally came just two days after the token’s price sank to a two-week low of $0.112. XLM’s latest rally also prompted opportunistic traders to palace positions, leading to an 182% hike in its 24-hour trading.
The appreciation in Stellar’s price also led to a $340 million increase in its market capitalization. Interestingly, the rally came amid consistent shorting of the token by crypto traders. Data from Coinglass showed that XLM had a long-to-short positions ratio of 1:19. The recent rally led to the liquidation of over $311,000 worth of short positions over the past 24 hours.
According to Santiment, the massive liquidations could trigger a bullish movement in Stellar’s price. However, liquidation data from Coinglass showed significant short XLM positions, suggesting that traders’ sentiment was leaning toward bearish price action. The rally also promoted the total open interest on XLM perpetual contracts to increase by over 54% on centralized exchanges.
Santiment is projecting similar breakout potential for Toncoin (TON), Monero (XMR), and Arbitrum (ARB). Data from CoinMarketCap showed that the tokens registered a price hike of 6.6%, 2.1%, and 3.3% respectively.