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Stellar ($XLM) could soar by 22% to reach $0.43 if it closes a daily candle above $0.35 level.
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$XLM open interest has soared by 9% in the past 24 hours indicating growing trader interest.
Amid market uncertainty, Ripple rival Stellar ($XLM) has reached a critical make-or-break level, leaving investors and traders uncertain. The past few days have been unfavorable for the $XLM token, with a 38% price drop. However, recent gains over the past two days appear to be shifting market sentiment.
Stellar ($XLM) Technical Analysis and Price Prediction
During the continuous price drop, $XLM seems to have faced consistent resistance from a descending trendline. However, the price is now on the verge of a breakout.
According to expert technical analysis, this level will be crucial for $XLM in determining whether it will rally or plunge in the coming days. Based on recent price action and historical momentum, if $XLM breaches this descending trendline resistance and closes a daily or four-hour candle above the $0.35 level, there is a strong possibility it could soar by 22% to reach $0.43 in the future.
On the other hand, if the asset fails to breach this level, there is a strong possibility it could plunge by 10% to reach the $0.30 level. Despite this prediction, $XLM is currently trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, which reinforces its uptrend.
Current Price Momentum
At press time, $XLM is trading near $0.346 and has surged over 3.50% in the past 24 hours. However, due to its confusing price action pattern, trader and investor participation declined during the same period, resulting in a 4% drop in trading volume.
$4 Million Worth of $XLM Outflow
Looking at the current price action, investors have been dumping $XLM tokens, as reported by the on-chain analytics firm Coinglass. Data from spot inflow/outflow reveals that exchanges have witnessed an outflow of $XLM tokens worth $4 million in the past 48 hours.
However, $XLM’s open interest appears to be increasing and has surged by 9% in the past 24 hours, indicating growing trader interest in the asset and the formation of new positions over the past 24 hours.