Stellar [XLM] Surges 8.5% to $0.2933, Market Cap Nears $9.05 Billion

Stellar [XLM], which had been in a prolonged bearish channel since November 2024, has finally shown signs of recovery. The XLM price rally has experienced a significant increase, rising 8.5% in a single day to $0.2933. This surge has brought the market capitalization of Stellar close to $9.05 billion, indicating a bullish breakout. The total trading volume for the day was $228.15 million, with a notable 18.64% increase, suggesting heightened market involvement. Additionally, 65.37% of the top traders on Binance had long positions, demonstrating strong confidence in the XLM bullish trend. As XLM hovers above critical support levels, the market is closely watching whether the asset can maintain its momentum and challenge the next major resistance level.

The recent Stellar price rally is supported by robust on-chain metrics and a significant shift in trader sentiment. Data from Coinglass indicates that the Binance XLMUSDT Long/Short ratio has surged to 1.89, with 65.37% of top traders favoring long positions. This signals a clear bullish trend and growing confidence in the asset’s near-term trajectory. Furthermore, $6.37 million worth of long positions are concentrated near key XLM price support around $0.2558. Outflows from exchanges totaling $1.19 million further suggest accumulation pressure, indicating a reduced selling risk and potential strength in sustaining the XLM price rally.

The XLM Exchange Liquidation Map provides important insights into the ongoing XLM price rally. A significant cluster of leveraged long positions is located near the XLM price support at $0.2558, while resistance is forming at around $0.295. Approximately $6.37 million in long positions and $1.63 million in shorts are at risk near these critical levels, highlighting a delicate balance. Technical analysis supports the bullish view, as XLM successfully broke above the descending channel pattern. If the XLM price holds steady above $0.275, historical behavior suggests a possible 30% climb toward the $0.375 XLM resistance level. Traders are closely monitoring the support and resistance structure to validate the longevity of the Stellar bullish trend.

The breakout from the multi-month descending channel has solidified confidence in the ongoing Stellar price rally. Daily candlestick closure above the key channel resistance reinforces the bullish market structure. Spot inflow and outflow data, paired with strong derivative activity, align with this technical setup. A prolonged advance above $0.295 may pave the way for additional increases, although keeping levels above $0.26 is still essential to maintain the XLM price support. If overall crypto conditions continue to be favorable, this combination of technical and on-chain signs suggests a long-lasting XLM bullish trend.

The current goal of the XLM price increase is a clear breakthrough above the $0.295 resistance level. If this level is successfully broken, a 30% upside could be possible, validating the next target at $0.375. The bullish structure could be in jeopardy, though, if the crucial Stellar price support around about $0.26 is not defended. Investors will be watching closely to see if the positive trend in XLM holds up over the next several sessions. Stellar may establish itself as one of the best-performing altcoins in early 2025 if bullish sentiment persists, particularly as confidence about XLM’s ability to maintain higher market capitalization levels, currently at $9.05 billion with a fully diluted valuation (FDV) of $14.66 billion.