With this impressive upward momentum, the current trading price of XLM is close to $0.375. However, this significant increase began on the eve of the Asian trading session. At the same time, this momentum further attracted traders and investors, resulting in a 95% increase in volume during the same period.

According to the on-chain analysis company Coinglass, the potential reason for this rebound is the bullish price trend of XLM and the liquidation of millions of dollars in short positions.

Short Position Liquidation

The data shows that in the past four hours, traders of XLM have liquidated short positions worth $531,570, with a total liquidation amount of $711,230. This indicates that the bulls are now dominating the asset and may potentially carry out further short liquidation in the next few hours.