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Stellar (XLM) has recently surged over 11%, flipping SUI in market capitalization, signaling renewed investor confidence in the cryptocurrency.
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This rally can be attributed to strong buying pressure and the formation of a bullish double bottom pattern on the four-hour chart.
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According to a recent analysis, “The current market dynamics suggest XLM could target a new multi-week high near $0.52.”
Stellar’s recent surge in market cap and price gains suggest a tightening battle in the crypto rankings, potentially making it a contender for the top ten.
XLM’s Recent Surge: Analysis and Outlook
Stellar’s current momentum has led to a significant rise, as the XLM price recently reached a weekly high of $0.467. This shift comes as the cryptocurrency flipped SUI, now holding a ranking as the 12th largest digital asset with a market capitalization of approximately $14.21 billion. The market has shown strong buying support, particularly with the Relative Strength Index (RSI) nearing overbought levels, hinting at the possibility of further gains.
Technical Indicators Signal Continued Strength
In addition to the price rally, XLM’s technical indicators provide optimistic insights. The formation of a double bottom pattern suggests a bullish trend, and recent trading volumes peaked at $154 million, indicating heightened market interest. The Moving Average Convergence Divergence (MACD) also reflects bullish momentum, with a positive line trajectory supporting buyers’ control of the market.
(Source: Tradingview)
The Impact of Liquidation Levels on XLM’s Growth
As XLM continues to climb, it faces notable risks due to liquidations. More than $1.5 million in short positions were liquidated amidst this rally, amplifying the demand for long positions as funding rates turned positive, according to Coinglass. However, the liquidity heatmap suggests vulnerable zones around $0.40 – $0.41 remain, which could act as detractors to further price ascents.
(Source: Coinglass)
XLM’s Path to the Top Ten Cryptocurrencies
Stellar’s current standing places it in close competition with Avalanche (AVAX) and Tron (TRX), as it inches towards flipping AVAX with its market cap of $15.34 billion. Achieving a top ten position will require Stellar to add an additional $5 billion, building upon its recent gains. Historical data shows XLM’s market cap increased from $9.8 billion to $14 billion within the first few days of 2025, illustrating the potential for further upward momentum.
Conclusion
Stellar’s recent performance not only highlights its resilience in a volatile market but also positions it as a serious contender among the leading cryptocurrencies. With key technical indicators suggesting further price gains and a shift in trader sentiment, XLM might well find itself among the top ten as investor interest grows. Keeping an eye on liquidation levels and overall market conditions will be crucial for subscribers and traders alike.
