After a challenging period marked by a steep 18% price decline, Stellar (XLM) appears to be regaining its bullish momentum. The cryptocurrency market, which had been in a continuous downtrend, seems to be showing signs of recovery, and XLM is no exception. Despite breaking through its crucial support level of $0.403, XLM has recently reversed course and is now positioning itself for potential gains.
Price Recovery Triggered by Political Shifts
One key factor contributing to the market’s turnaround is the upcoming inauguration of President-elect Donald Trump, set for January 20, 2025. This political event is expected to influence market sentiment, sparking optimism across various cryptocurrencies, including XLM. The recent upside momentum could signal the beginning of a strong rally for Stellar, with traders anticipating further upward movement.
XLM Technical Analysis: Attractive Setup for Traders
The XLM daily chart is showing an ideal setup for traders looking to capitalize on the recovery. A favorable 1:5.6 risk-to-reward ratio is evident, with a stop loss at $0.38 and a price target set at $0.60. Technical analysis reveals a potentially bullish inverted head-and-shoulders pattern forming, which could propel XLM to new highs if the price continues its upward trajectory.
Key Levels to Watch
Traders should keep an eye on the $0.415 mark as a critical level. A daily close above this point could signal a significant surge in XLM’s price. Conversely, liquidation zones at $0.388 and $0.422 may create volatility, as over-leveraged positions could face liquidation if the price swings in either direction.
Current Price Momentum and Market Activity
XLM is currently trading at $0.418, reflecting a 4.5% price surge in recent trading sessions. Notably, increased trading volume suggests that market participants are becoming more active, further bolstering the bullish outlook for Stellar in the coming days.
Also Read: XLM Soars After Binance Launches JPY Trading Pairs: What It Means for Stellar’s Future
As the market stabilizes and political events unfold, XLM traders will be watching closely for signs of continued recovery and further price gains.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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