Stellar’s native token, XLM, has experienced a 40% surge over the past three days in January 2025. This incredible price rise within such a short period of time has caught the attention of prominent investors and traders in the cryptocurrency space.
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However, according to CoinGlass, an on-chain analysis company, concerns are growing as some investors appear to be continuously dumping XLM on exchanges. Spot inflow/outflow data shows that exchanges saw significant inflows of $36.36 million worth of XLM tokens when altcoins surged.
These significant inflows into the exchange indicate a potential sell-off by long-term holders who bought the altcoin while its paper returns were falling last month. In the cryptocurrency environment, inflows usually indicate potential selling pressure and possible price declines.
However, this was observed as XLM reached one of the strongest resistance levels around $0.45. The last time an altcoin approached this level, it experienced a prolonged consolidation and is currently showing similar signs. This has raised concerns among traders and investors about whether prices will consolidate further or a decline could occur.
XLM’s current price action
Recent price action suggests that the price appears to have moved significantly higher, so a potential consolidation near this level is likely. This is a period where consolidation often attracts new investors, traders, and long-term holders, potentially strengthening XLM for further rallies.
XLM price prediction and current price momentum
According to expert technical analysis, if XLM breaks this resistance line and closes the daily candle above $0.465, it could surge 30% and reach a 52-week high. Otherwise, consolidation and price distribution will likely continue.
As of press time, XLM is trading near $0.45 and has experienced a price surge of over 4.5% in the past 24 hours. During the same period, trading volume decreased by 40%, potentially indicating reduced participation from traders and investors due to price consolidation as it neared resistance levels.