Stellar [XLM] Skyrockets 608% in Just 21 Days – What Comes Next?

In an astonishing surge, Stellar [XLM] has seen its trading volume soar beyond $2.8 billion as of last Sunday, marking a dramatic period of growth for the cryptocurrency. Despite a recent pullback that left the token down 25% from its weekend highs, it remains impressively 390.5% above its value just three weeks ago, primarily fueled by the bullish momentum of Bitcoin [BTC].

Historically, Stellar reached its all-time high of $0.8756 in January 2018. Investors are now eyeing critical Fibonacci extension levels, with targets stretching from $0.766 to $0.975 as potential long-term bullish milestones. However, technical analysis suggests that XLM might be entering a retracement phase, with possible declines to levels around $0.363 or even lower.

Unprecedented Demand for XLM

Between November 4 and November 24, Stellar’s impressive 608% gain over 20 days is a testament to its rising popularity in the crypto market. With a market cap of $14.3 billion, this type of explosive return is nothing short of remarkable.

The Chaikin Money Flow (CMF) indicator stands at +0.17, having consistently remained above +0.15 since November 6, signaling substantial capital inflows into XLM. Moreover, trading volume reached its peak at $2.83 billion last Sunday, confirming the heightened interest in Stellar.

As XLM experiences a pullback this week, analysts are keenly observing the Money Flow Index (MFI), which has yet to indicate any bearish divergence on the daily chart. However, the recent dip could push the MFI lower as XLM retraces toward key Fibonacci support levels.

The Liquidation Landscape: What's to Expect?

Recent liquidation map data reveals a concerning cluster of long liquidation levels positioned between $0.46 and $0.473, indicating that these long liquidations are more pronounced than nearby short liquidation zones. This might lead to a potential dip in XLM’s price towards the $0.46 level in the upcoming days.

An analysis of the liquidation heatmap reveals two significant liquidity pools—one near the current market price around $0.533 extending up to $0.55, and another substantial cluster near the $0.40 mark. The level of $0.463 is also anticipated to act as a potential bounce point for Stellar in the short term.

Overall, while the recent rally of Stellar [XLM] is dazzling, market participants should exercise caution as the coin navigates through potential volatility and assesses its next moves. Could this be the prelude to even greater heights, or is a deeper correction on the horizon? Keep your eyes peeled!