Stellar (XLM) has experienced a significant surge, gaining over 11% in the past 24 hours and surpassing Sui (SUI) in market capitalization. XLM now ranks as the 12th-largest cryptocurrency with a market cap of $14.21 billion, trading at a weekly high of $0.467.
Technical Analysis Suggests Further Upside
Technical analysis indicates potential for further gains. XLM has formed a double bottom pattern on the four-hour chart, suggesting a bullish continuation. The successful break above the pattern’s neckline strengthens this bullish outlook. The next price target is the 1.618 Fibonacci extension level at $0.52, which would represent a new monthly high.Supporting this bullish momentum:
- Volume: High trading volume confirms buyer interest.
- RSI: The Relative Strength Index (RSI) is at 71, indicating potential overbought conditions.
- MACD: The Moving Average Convergence Divergence (MACD) shows positive momentum, with the MACD line trending upwards.
Liquidation Risks
While bullish, the recent price surge has triggered significant short liquidations, exceeding $1.5 million. This has increased demand for long positions, as evidenced by positive funding rates. However, there are liquidation clusters below the current price, particularly between $0.40 and $0.41, which could act as resistance and potentially trigger a sharp price decline if triggered.
Potential for Top 10
XLM is now approaching Avalanche (AVAX) in market cap. To enter the top 10, it needs to surpass Tron (TRX), requiring an additional $5 billion in market capitalization. Given the recent strong performance, this is not entirely out of the question, but sustained uptrend momentum will be crucial.
January 2025, Cryptoniteuae
