Stellar (XLM) is ready for a bullish signal, threatening a 70 million USD short position.

Stellar (XLM) has risen to the sky recently, supported by the optimistic sentiment of the crypto market. This upward momentum has created positive momentum, which is currently evident through various technical indicators.

The price of XLM is showing signs of continued growth and investors are waiting to see if this altcoin will continue its upward trend.

Signals Indicate XLM May Continue to Recover

The MACD indicator is signaling a potential bullish crossover (. Recently, the MACD histogram chart nearly transitioned to the bullish zone but was slightly interrupted.

However, with the general market context gradually stabilizing, it is highly likely that this bullish signal will soon be completed, helping XLM break through the current resistance levels and creating additional momentum to attract investors.

![])https://img-cdn.gateio.im/webp-social/moments-f9d740f8e47dc79d12c949552f5af78d.webp(XLM MACD | Source: TradingViewAdditionally, the liquidation map) data from Coinglass shows that many traders are still holding short positions worth nearly 70 million USD. If XLM continues to rise to the sky, this wave of liquidations could trigger additional buying pressure, making it difficult for the bears to control the crypto market.

The comprehensive recovery target of XLM is located at the $0.50 range – where this altcoin can accumulate and face new resistance levels. Reaching this milestone will force many Short investors to close their positions, creating a ripple effect that pushes the price higher.

XLM liquidation map | Source: Coinglass## XLM needs a push to complete its recovery momentum

Currently, XLM is trading around $0.44, up 18% in the past 10 days and facing a resistance level of $0.445. To complete the recovery process, XLM needs to break through this resistance level and aim for $0.500.

If the price continues to move in this direction, the growth momentum could push XLM up to $0.470, getting closer to the target of $0.500. As the liquidation of Short positions increases, selling pressure will ease, paving the way for the uptrend to be maintained and even break above $0.50.

Technical analysis of XLM | Source: TradingViewHowever, if XLM faces selling pressure, the price may drop below the support level of $0.424. A decline to $0.393 would invalidate the bullish thesis, signaling a change in market sentiment.

Such adjustments will raise concerns about the sustainability of the current trend, potentially slowing down the recovery momentum of XLM.

Vincent