Stellar’s XLM price breaks out: is a 30% surge coming?
Stellar Lumens price staged a strong breakout, crossing a key resistance level as positive sentiment continued to build in the crypto industry.
Stellar (XLM) surged to an intraday high of $0.4850, its highest level since December 9, marking a 56% increase from its lowest point in December.
Its price action mirrored that of Ripple (XRP) and other major cryptocurrencies. Ripple crossed the significant $3 resistance level, pushing its market capitalization to $163 billion, surpassing BlackRock, the world’s largest asset manager.
Other cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH) and Solana (SOL) also saw gains, pushing the combined market cap of all crypto assets to $3.6 trillion.
The rally across the crypto market was driven by the release of encouraging consumer inflation data. Core Consumer Price Index figures dropped to 3.2% in December from 3.3% in November, causing a significant decline in U.S. bond yields. Analysts believe that if inflation continues to fall, the Federal Reserve may shift toward a more dovish monetary policy.
Stellar Lumens also benefited from growing optimism around Donald Trump’s upcoming inauguration and potential regulatory changes in the crypto industry. According to Reuters, the incoming SEC leadership, including Paul Atkins and other Republican commissioners, is considering freezing some enforcement actions and seeking public input on crypto regulations. These policy changes could provide a significant boost to the crypto market.
The news is particularly positive for Ripple, which has been locked in a legal battle with the SEC for the past four years. Stellar and Ripple are closely related as both focus on cross-border payments. Additionally, Stellar’s founder, Jed McCaleb, was part of Ripple’s founding team.
XLM price analysis
The Stellar Lumens token surged to an intraday high of $0.4860, the highest level since December 16. The price rebound followed the formation of a falling wedge pattern, characterized by two converging trendlines moving downward—often considered a bullish reversal signal.
Stellar has remained above its 50-day moving average and is approaching the 23.6% Fibonacci Retracement level at $0.5090. Additionally, the recent rally has invalidated a double-top pattern that was forming, further supporting the bullish case.
Given these technical indicators, XLM is likely to continue rising, with bulls targeting last year’s high of $0.6400—about 30% above the current price. However, this bullish outlook will be invalidated if the token drops below the key support level at $0.40.
