Stellar (XLM) has captured market attention with an impressive 11% surge over the past 24 hours, pushing its price to $0.467. This sudden rally has elevated its market capitalization to $14.21 billion, allowing it to surpass SUI and secure its position as the 12th largest cryptocurrency by market cap.
While the price action has been bullish, technical signals suggest more upside potential, with a $0.52 target on the horizon. However, traders are also eyeing potential risks that could test the rally’s durability.
The surge in Stellar’s price represents a significant milestone for the cryptocurrency, which started the year at a market cap of $9.8 billion. In just a few weeks, XLM has added over $4 billion in value, reflecting increased investor confidence and market interest.
The trading volume has also seen a dramatic uptick, reaching $154 million within the last 24 hours. This heightened activity indicates strong participation from both retail and institutional players, further fueling the rally.
Stellar’s price chart reveals a double bottom pattern on the four-hour timeframe, a bullish structure that often precedes significant upward movements. The breakout above the pattern’s neckline has validated the trend, setting the stage for further gains.
The 1.618 Fibonacci extension level at $0.52 has emerged as the next critical target for XLM. If the momentum continues, this level could mark a new monthly high, solidifying the asset’s bullish trajectory.
The Relative Strength Index (RSI) currently sits at 71, signaling strong buying pressure. However, this also places XLM near overbought levels, suggesting that a period of consolidation or minor pullback may occur before the next leg up.
The Moving Average Convergence Divergence (MACD) indicator reinforces the bullish outlook, showing positive momentum and an upward trendline.
Despite the optimistic technical indicators, Stellar faces notable risks. A significant liquidation zone exists between $0.40 and $0.41, which could trigger a reversal if breached. Over the past day, $1.5 million in short positions have been liquidated, underscoring the market’s volatility.
If bearish sentiment reemerges near the critical support zone, it could dampen the rally and lead to a broader correction. Traders should monitor these levels closely to assess potential risks.
Stellar’s recent rally has positioned it closer to Avalanche, which currently ranks 11th with a market cap of $15.34 billion. To break into the top 10 cryptocurrencies, XLM would need to add approximately $5 billion in market value.
The broader competition among altcoins remains intense, with projects like Solana and Polkadot also making strides. Solana, in particular, has been gaining traction with its ecosystem growth and rising institutional interest, presenting a challenge for Stellar in its quest for dominance.
Stellar’s recent gains are not solely driven by technical patterns. Growing community engagement and institutional interest have also played a pivotal role. The network’s ongoing efforts to improve cross-border payments and partnerships with financial institutions have bolstered its long-term appeal.
As blockchain adoption grows, Stellar’s focus on creating practical solutions for global payments positions it as a key player in the market.
Stellar’s strong rally and bullish technical signals suggest that the $0.52 target is within reach if momentum persists. However, the market’s inherent volatility and key resistance zones could pose challenges along the way.
For now, Stellar’s impressive start to 2025 has placed it in a strong position to capitalize on further market opportunities. Traders and investors should stay vigilant, balancing optimism with caution as the market unfolds.
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