Stellar (XLM), the native token of the Stellar blockchain network, has seen a significant price surge of 40% in the first three days of January 2025. This sudden increase in price has caught the attention of many investors and traders in the cryptocurrency market.
Despite the impressive price rally, there are growing concerns about profit booking in XLM. Data from CoinGlass, an on-chain analytics firm, shows that there has been a substantial inflow of $36.36 million worth of XLM tokens onto exchanges during the recent price surge. This influx suggests that long-term holders may be selling off their holdings to lock in profits, potentially putting downward pressure on the price.
The current price action of XLM has brought the token close to a strong resistance level at $0.45. Historically, when XLM has reached this level, it has experienced a period of consolidation. This has led to speculation among traders and investors about whether the price will consolidate further or if a decline is imminent.
Based on recent price movements, it is likely that XLM will consolidate around the $0.45 mark. This consolidation phase could attract new investors and strengthen the token for a potential further rally.
In terms of price prediction, experts suggest that if XLM manages to break through the $0.465 resistance level and close above it, the token could see a 30% surge to reach its 52-week high. However, if the resistance level holds, consolidation and price distribution are expected to continue.
As of the latest data, XLM is trading near the $0.45 mark and has seen a 4.5% price increase in the past 24 hours. However, trading volume has dropped by 40%, indicating lower participation from traders and investors. This decrease in volume could be attributed to the ongoing price consolidation as XLM approaches a key resistance level.
Overall, the recent price surge in XLM has generated excitement in the crypto community, but profit booking and price consolidation are now key factors to watch as the token navigates its current price levels. Investors and traders are advised to monitor the market closely for further developments in XLM’s price action.