XLM Surges 5% Amid Crypto Rally; Bulls Eye $0.50 as Resistance Looms

XLM, the native token of Stellar, has been making waves in the crypto market, with a significant rally in recent days. Despite not reaching the expected heights, XLM has shown impressive gains, driven by a shift in market sentiment following the Crypto Strategic Reserve announcement.

As of March 3, 2025, XLM has gained 5% in the past 24 hours and is currently trading near $0.33. While its rival XRP has soared during the same period, XLM has reclaimed the crucial support level of $0.31 but is once again facing selling pressure at $0.36, a historical resistance level.

Technical analysis suggests that XLM is forming an inverted head and shoulders pattern on the daily timeframe, with a neckline at $0.365. If the asset continues to rise, breaches the $0.365 level, and closes above it, there is a strong possibility it could surge by 40% to reach $0.50 in the coming days. Additionally, XLM successfully retested its 200-day Exponential Moving Average (EMA) during the recent price dip, indicating that the asset is in an uptrend and highlighting its bullish strength.

Investors and traders have shown strong interest and confidence in XLM, betting on the upside and accumulating tokens, as reported by on-chain analytics firm CoinGlass. Data from spot inflow/outflow reveals that exchanges have witnessed a significant outflow of $2.45 million worth of XLM tokens in the past 24 hours.

At press time, the major liquidation levels are at $0.318 on the lower side and $0.339 on the upper side, with traders over-leveraged at these levels. Bulls are currently dominating the asset, building $2.90 million in long positions at the lower level, hoping the price won't fall below $0.318. Meanwhile, traders betting on the short side have held $2.18 million in short positions at the $0.339 level. However, these positions will be liquidated once the price moves in either direction.