XLM, Stellar’s native token, has seen a significant increase of 40% in the last three days of January 2025. This remarkable price increase within such a short period has caught the attention of prominent investors and traders in the crypto space.
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However, according to an on-chain analytics firm, concerns are now increasing as some investors appear to be continually dumping XLM on exchanges. MintGlass. Spot inflow/outflow data shows that exchanges recorded a substantial inflow of $36.36 million of XLM tokens as the altcoin skyrocketed.
These substantial inflows on the exchanges indicate a potential sell-off by long-term holders who bought the altcoin during last month’s dip to book profits. In the cryptocurrency landscape, inflows typically indicate potential selling pressure and a possible price drop.
However, this was observed when XLM reached one of its strongest resistance levels around $0.45. The last time the altcoin approached this level, it experienced a prolonged consolidation and is now showing similar signs. This has raised concerns among traders and investors as to whether the price will consolidate further or whether a decline could occur.
XLM’s current price action
Based on the recent price action, there is a high chance of a potential consolidation near this level as the price appears to be under significant pressure. This is a period when consolidation often attracts new investors, traders and long-term investors, potentially strengthening XLM for a further rally.
XLM Price Prediction and Current Price Momentum
According to expert technical analysis, if XLM breaks this resistance level and closes a daily candle above $0.465, it could rise 30% to hit a 52-week high. Otherwise, consolidation and price distribution are likely to continue.
At the time of writing, XLM is trading around $0.45 and has experienced a price increase of over 4.5% in the last 24 hours. During the same period, trading volume fell by 40%, indicating lower participation from traders and investors, possibly due to price consolidation as the resistance level approaches.