In a dramatic turn of events, Stellar Lumens (XLM) has been riding a bullish wave, breaking past key resistance levels and recording a staggering 46.3% gain within a 24-hour period. This surge was largely attributed to the ripple effect of a favorable ruling for Ripple (XRP) in its case against the US Securities Exchange Commission (SEC), which had a positive impact on the altcoin market.
Short traders have been hit hard, with XLM shorts seeing open positions worth $6.56 million liquidated over the past 24 hours.
It then tumbled down almost 35% from the temporary top.
The price of XLM reached a new 2023 high of $0.197 before retracing to trade at $0.143. However, as of today, the price of Stellar stands at $0.131374, representing a -12.62% price decline in the last 24 hours but a 33.30% price increase in the past 7 days.
Despite the recent dip, Stellar Lumens has shown a remarkable resilience. The altcoin has a 24-hour trading volume of $341,977,338.88 and a market cap of $3,581,151,503.
In terms of price analysis, XLM has broken out of the channel it formed back in November 2022. It shot out of it and reached $0.2 at one point before sharply falling to $0.13. For the bullish momentum to continue, it is crucial that XLM holds above the $0.11 mark. If it does, the next stops could be $0.25 and then $0.40.
While the current trend suggests a potential for further gains, investors should tread carefully. The market is ripe for profit-taking activities, which could provide opportunities for sellers in the mid to long-term. As always in the crypto world, caution and vigilance are key.
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