San Francisco, CA – Stellar (XLM) cryptocurrency has experienced significant fluctuations in trading volume and price recently. Last Sunday, the daily trading volume of XLM reached over $2.8 billion, indicating a surge in market activity. However, despite this high trading volume, the token has shown signs of entering a retracement phase, with prices 25% lower than recent highs.

In the past three weeks, XLM has seen a remarkable increase of 390.5%, largely influenced by the bullish trend in Bitcoin (BTC). The token’s all-time high of $0.8756, set in January 2018, remains a key point of reference for investors. Analysts are eyeing further bullish targets at $0.766 and $0.975 based on Fibonacci extension levels.

As Stellar enters a retracement phase, experts suggest that the altcoin could potentially drop to $0.363 or even lower in the near future. Despite the recent pullback in prices, XLM’s demand has skyrocketed, leading to a 608% rally from the lows on November 4th to the highs on November 24th.

The Coin Money Flow (CMF) indicator, currently at +0.17, has been showing consistent positive values since early November, indicating strong capital inflows into XLM. Additionally, the trading volume peaked at $2.83 billion, highlighting increasing market activity around the cryptocurrency.

Analyzing the liquidation map data, it is evident that there is a cluster of long liquidation levels in the $0.46-$0.473 range, suggesting a potential dip in XLM’s price in the coming days. Furthermore, the liquidation heatmap outlines key liquidity zones at $0.533 and $0.55 to the north, and $0.4 to the south, offering potential support and resistance levels for XLM traders.

Overall, while XLM has shown impressive gains in a short period, market analysts warn of possible price corrections and suggest closely monitoring key support and resistance levels to make informed trading decisions. Investors are advised to exercise caution and conduct thorough research before making any financial decisions based on the current market trends.