Stellar (XLM) has had an impressive run recently, surging by 43.44% over the past 8 days. The cryptocurrency moved past key resistance levels, gaining attention from traders and investors alike. However, as the price experiences a slight pullback, many are wondering what’s next for Stellar and whether it can maintain its upward momentum.

Stellar’s Recent Performance: A Breakout Above Key Resistance

Between November 4 and November 12, Stellar rallied by a remarkable 57.22%, reaching a high of $0.1415. This sharp rise took it above key resistance levels that had held strong for months, specifically the $0.097 and $0.103 zones, which had acted as significant barriers to further gains since August.

The breakout was seen as a major shift in the market structure. On November 7, the token breached the previous lower high at $0.097, signaling a potential shift from a range-bound market to a bullish trend. The price quickly accelerated past the $0.1-$0.103 resistance area, demonstrating the strength of the rally.

As the price soared, the Supertrend indicator turned bullish, flashing a buy signal. This shift in momentum suggests that XLM is in a strong uptrend, though caution is needed, as a break below the $0.107 support zone could trigger a bearish reversal.

Short-Term Retracement and Buying Opportunities

While Stellar has made impressive gains, it has also experienced a minor retracement of 7.84% from its high of $0.1415. As of now, the price is still well above its key moving averages, indicating that the overall trend remains bullish. However, the 100-period and 200-period moving averages have yet to confirm the golden cross, which would be a sign of sustained bullish momentum.

The $0.107-$0.11 zone is key in the short term. If the price retraces to these levels, it could present a potential buying opportunity. Traders should look for a bounce at these levels, as they correspond to the highs seen in July. A dip to the $0.115-$0.107 range could also be seen as a buy zone, as it aligns with previous resistance levels turning into support.

Liquidation Levels and Potential Volatility

A key factor to monitor is the liquidation map, which shows areas of high leverage and potential price movements. According to Coinglass, there is a significant concentration of liquidations at the $0.1322 and $0.123 levels. These levels represent areas where both short and long liquidations could trigger significant price action.

If the price approaches these levels, there could be a cascade of liquidations that may push the price in either direction. A sweep of the liquidity at $0.123 or $0.115 could present buying opportunities for traders. However, caution is advised, as the liquidation zones can also cause sudden volatility, making risk management essential.

Key Levels to Watch for Stellar (XLM)

As XLM moves forward, traders should keep an eye on the following key price levels:

• Resistance: The next targets for XLM are the $0.162 and $0.197 levels, where the price could encounter further resistance. A clear break above these levels would confirm the continuation of the uptrend.
• Support: On the downside, the $0.115 and $0.107 support zones are crucial. A dip to these levels could be seen as a potential buying opportunity, especially if the price shows signs of holding support.
• Critical Liquidity Zones: The $0.1322 and $0.123 levels have significant liquidation activity. A move into these zones could create short-term volatility, offering traders opportunities to take advantage of the price fluctuations.

The Outlook for XLM

Overall, Stellar’s price action suggests that the altcoin is in a strong bullish phase. However, the cryptocurrency market is known for its volatility, and short-term fluctuations are inevitable. If the bullish momentum continues and XLM manages to break through higher resistance levels, it could see further gains, potentially targeting the $0.162 and $0.197 regions.

For traders looking to go long on XLM, monitoring Bitcoin’s (BTC) momentum is crucial. Bitcoin’s price action often influences the broader cryptocurrency market, and a strong rally in Bitcoin could provide additional upward momentum for altcoins like Stellar.

In conclusion, Stellar has shown impressive strength with its recent breakout, but traders should stay cautious and prepared for short-term volatility. The next few days will be critical in determining whether XLM can maintain its bullish trend or if it will face a deeper retracement before targeting higher price levels.