Miami, Florida – The daily trading volume of Stellar (XLM) surpassed $2.8 billion last weekend, marking a significant milestone for the digital asset. Despite experiencing a 25% drop from its recent highs, XLM remains 390.5% higher than its value three weeks ago, largely influenced by the bullish momentum of Bitcoin (BTC).
Having set an all-time high of $0.8756 back in January 2018, Stellar is currently eyeing long-term bullish targets at levels such as $0.766 and $0.975. However, the altcoin is now entering a phase of retracement, possibly falling towards $0.363 or even lower in the near future.
The rapid surge in demand for XLM has been evident as the token rallied a remarkable 608% in just 20 days between November 4th and November 24th. This surge, combined with the increasing trading volume which peaked at $2.83 billion, indicates significant capital inflows to the market.
Analyzing the market further, it is noted that the Money Flow Index has not yet signaled a bearish divergence on the daily chart. However, the recent pullback suggests that the MFI could decrease as XLM retraces towards key Fibonacci support levels, potentially leading to a decrease in prices.
In terms of liquidations, data reveals a cluster of long liquidation levels in the $0.46-$0.473 range, outweighing nearby short liquidation clusters. This suggests a possible dip for XLM towards the $0.46 mark in the coming days, presenting a challenging scenario for investors.
Looking ahead, analysts point to key liquidity zones at $0.533 and $0.55, as well as a significant cluster around $0.4, which could influence future price movements for Stellar. The short-term outlook also highlights the $0.463 level as a potential bouncing point for XLM amidst the current market conditions.
It is important to note that while these insights provide valuable information for market participants, they should not be construed as financial advice. As the market continues to evolve, investors are encouraged to conduct thorough research and seek professional guidance when making investment decisions.