Stellar Lumen (XLM) has recently captured the attention of traders and investors as it shows signs of significant upside momentum. On March 19, 2025, the cryptocurrency broke through a key resistance level, signaling the potential for a 60% rally. This price surge comes on the back of a major shift in sentiment in the crypto market, particularly following the news that the United States Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple Labs. With XLM trading near $0.29, many traders are eyeing the potential for further gains in the coming days.

Why is XLM Price Rising?

XLM’s price has been on a steady upward trajectory in recent days, having surged more than 11% within a 24-hour period. This spike in value suggests that the cryptocurrency is beginning to mirror the bullish momentum seen in its rival, Ripple’s XRP. The catalyst for this price movement can be traced to the end of the long-standing legal battle between Ripple Labs and the SEC. As the legal dispute comes to a close, with the SEC dropping the lawsuit against Ripple, positive sentiment has been injected into the broader market.

This legal victory for Ripple has fueled optimism in the cryptocurrency space, with investors now seeing the potential for more favorable regulatory conditions for digital assets. As a result, traders have shifted their focus to other assets in the same ecosystem, including XLM, which is seen as a competitor to XRP.

The statement surrounding Ripple’s legal victory has also led to a significant increase in trading volume for XLM. Over the same 24-hour period that saw the 11% price jump, trading volume for XLM rose by a staggering 135%. This surge in volume highlights growing investor participation and a renewed interest in the cryptocurrency.

XLM Price Analysis and Potential Levels

XLM has been in a downtrend since November 2024, forming a falling wedge pattern on the daily timeframe. However, the recent breakout above the 200 Exponential Moving Average (EMA) on March 19, 2025, marks a critical shift in the asset’s price action. This bullish signal indicates that XLM may be poised for a significant price rally.

Traders are now closely watching key price levels for signs of further momentum. If XLM is able to close a daily candle above $0.29, there is a strong possibility that the cryptocurrency could experience a 30% surge, pushing its price toward $0.37. If XLM can sustain this rally and close above the $0.35 level, analysts suggest that the price could reach $0.488, representing a potential 40% increase from its current price.

This optimistic outlook is supported by a combination of technical indicators and recent price action. Should XLM maintain its upward trajectory, it could continue to climb toward these target levels, with the potential for even higher gains.

Traders and Over-Leveraged Positions

Data from on-chain analytics firm Coinglass reveals that many traders have recently become over-leveraged in XLM, further highlighting the growing bullish sentiment. Traders have built significant long positions, with $5 million worth of long positions at the $0.2725 level, indicating confidence in a price rally. Additionally, bears have placed $2.20 million worth of short positions at the $0.3025 level, which could trigger additional volatility.

The current over-leveraged positions on both sides suggest that XLM is in a delicate balance, and a move in either direction could trigger significant price action. If the bulls can continue to support the price, XLM may quickly reclaim previous highs and push toward new all-time highs in the coming days.

Conclusion

Stellar Lumen (XLM) is in the midst of a bullish breakout, fueled by the end of the SEC lawsuit against Ripple and a shift in market sentiment. With a strong technical pattern in place and rising trading volume, XLM is well-positioned to see further price appreciation in the short term. Traders are eyeing the potential for a 30% to 60% rally, with key price levels of $0.37 and $0.48 on the horizon.

As XLM approaches critical resistance levels, it’s clear that the cryptocurrency is attracting significant interest from investors. Whether it can sustain this momentum and break through these levels remains to be seen, but for now, the outlook for XLM is undeniably bullish.