TLDR
- Stellar (XLM) has experienced an 11% price surge in 24 hours, overtaking SUI in market capitalization with a current value of $14.21 billion and trading at $0.467
- Technical analysis shows a double bottom pattern formation on the 4-hour chart, with the next price target predicted at $0.52 based on Fibonacci extension levels
- Trading volume has reached $154M with an RSI of 71, indicating strong buying pressure approaching overbought conditions
- Over $1.5M in short positions have been liquidated, while a significant liquidation zone exists between $0.40-$0.41 that could trigger a downtrend if breached
- XLM is approaching Avalanche’s market cap of $15.34B and needs to add $5B more to enter the top 10 cryptocurrencies
In a notable market movement, Stellar (XLM) has achieved a remarkable price increase of over 11% within the past 24 hours, pushing its trading value to $0.467. This surge has enabled XLM to overtake SUI in market capitalization rankings, securing its position as the 12th largest cryptocurrency by market value.
The latest market data shows Stellar’s market capitalization has reached $14.21 billion, marking a substantial increase from its early January 2025 value of approximately $9.8 billion. This growth represents a strong start to the new year for the digital asset, which has maintained steady upward momentum throughout the first weeks of 2025.
Trading activity has shown considerable strength, with volume reaching $154 million during the recent price movement. This increased trading activity suggests strong market participation and growing interest in the asset, as both retail and institutional traders appear to be actively engaging with XLM.
Technical analysis of Stellar’s price action reveals a double bottom pattern formation on the four-hour chart, typically considered a bullish indicator by market analysts. This pattern’s completion, coupled with the breakthrough of the pattern’s neckline, provides technical validation for the current upward movement.
The Relative Strength Index (RSI) has climbed to 71, approaching overbought territory. While this metric suggests strong buying pressure, it also serves as a cautionary indicator for traders considering new positions at current levels. The elevated RSI reading indicates that some consolidation may occur in the short term.
Further technical analysis points to the 1.618 Fibonacci extension level at $0.52 as the next major price target. This level represents a potential monthly high for XLM if the current momentum continues. The Moving Average Convergence Divergence (MACD) indicator supports this bullish outlook, showing positive momentum with an upward trajectory.
Market data from Coinglass reveals that the recent price surge has resulted in the liquidation of more than $1.5 million in short positions. These liquidations have contributed to the upward price pressure, as traders holding bearish positions were forced to close their trades.
The funding rate for XLM has turned positive, indicating that long-position traders are willing to pay premiums to maintain their positions. This metric suggests overall market sentiment remains bullish, though it also points to increased leverage in the market.
A notable risk factor exists in the form of a major liquidation zone between $0.40 and $0.41. This price range contains a high concentration of long positions that could face forced closures if the price experiences a sudden downturn. Such an event could trigger a cascade of liquidations and potentially lead to increased price volatility.
Trading data shows the formation of strong support levels below the current price, which could help maintain the upward trajectory. However, the presence of these liquidation clusters adds an element of risk to the current market structure.
Current market standings place Stellar just behind Avalanche (AVAX), which holds a market capitalization of $15.34 billion. The gap between these two assets has narrowed considerably during the recent price action.
For Stellar to achieve a position among the top ten cryptocurrencies, it would need to add approximately $5 billion to its market capitalization to surpass Tron (TRX). This goal appears more achievable given XLM’s recent performance, having added over $4 billion to its market cap in the first five days of 2025.
The latest trade data indicates sustained buying pressure, with support levels holding firm at key technical points. The four-hour chart continues to display bullish momentum, supported by healthy trading volumes and positive technical indicators.
Recent blockchain data shows increased network activity coinciding with the price surge, though this remains within normal operational parameters for the Stellar network. Transaction volumes have remained stable throughout the recent price movement.
At press time, XLM continues to trade near its weekly high of $0.467, maintaining the gains achieved during the recent surge. The immediate focus remains on whether the asset can sustain its current momentum and challenge the projected target of $0.52.
