- Stellar (XLM) recently surged 9%, briefly surpassing XRP’s gains amid a broader crypto market recovery, with analysts speculating on its potential for a 300% bull rally if key resistance levels are broken.
- Traders are closely watching XLM’s movement between its 50-day and 200-day moving averages to determine its next trend.
The cryptocurrency market has been buzzing with excitement as Stellar (XLM) made an impressive 9% gain within hours, surpassing its longtime rival, XRP. With the market in recovery mode, traders are wondering: Can XLM sustain its momentum and possibly outperform XRP?
XLM’s Recent Rally
In the early Wednesday session, XLM climbed to $0.308 before settling at $0.30, marking a 7.43% increase within 24 hours. This jump slightly edged out XRP, which saw a 6.43% gain. The surge comes amid a broader market rebound, with Bitcoin reclaiming the critical $90,000 level. This recovery has lifted several altcoins, including Stellar, as investors regain confidence.
The Battle Between Stellar and XRP
Historically, XLM and XRP have moved in tandem, often mirroring each other’s price trends. However, recent market behavior suggests a slight decoupling. XRP experienced a massive 35% jump over the weekend following news of a crypto strategic reserve that included major assets like XRP, ADA, SOL, BTC, and ETH. In contrast, XLM only saw a 13% gain during the same period.
Despite this, Stellar’s latest price movement suggests renewed investor interest. Analysts speculate that if XLM maintains its bullish momentum, it could continue its upward trend and possibly outperform XRP in the near term.
Key Resistance Levels to Watch
After rebounding from a low of $0.252 on February 28, XLM has now risen for three consecutive days, reaching a high of $0.375 on March 2. However, market volatility remains a concern. On Monday, XLM dropped from $0.361 to $0.289 following a $1 billion market liquidation, but it quickly recovered on Tuesday.
Currently, XLM is trading between its 50-day and 200-day moving averages, set at $0.363 and $0.258, respectively. Traders are closely watching these levels to determine XLM’s next move:
- Bullish Scenario: If XLM breaks above the 50-day SMA ($0.363), it could target the next key resistance levels at $0.51 and $0.63.
- Bearish Scenario: If it fails to hold its current position and drops below the 200-day SMA ($0.258), it could indicate a reversal.
Can XLM Outperform XRP?
Market analysts remain divided on whether Stellar can outpace XRP in the long run. According to crypto analyst Ali, XLM is poised for a potential 300% bull rally if it successfully breaks out of its symmetrical triangle pattern. This could put XLM in a strong position to challenge XRP’s dominance in the payments sector.
While Stellar’s short-term prospects look promising, traders should remain cautious and monitor key resistance and support levels. As always, conducting thorough research before making investment decisions is essential in the ever-volatile crypto market.
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