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.