🌎 Stellar Lumens Sees Strong Breakout Amid Market Surge

Stellar Lumens Sees Strong Breakout Amid Positive Crypto Sentiment

Stellar Lumens’ price has staged a strong breakout, crossing a key resistance level as positive sentiment continues to build in the crypto industry. The surge has mirrored the performance of Ripple and other major cryptocurrencies, pushing the combined market capitalization of all crypto assets to $3.6 trillion.

Recent Price Action and Market Trends

Stellar Lumens surged to an intraday high of $0.4850, its highest level since December 9, marking a 56% increase from its lowest point in December. Ripple crossed the significant $3 resistance level, pushing its market capitalization to $163 billion, surpassing BlackRock, the world’s largest asset manager. Other cryptocurrencies, including Bitcoin, Ethereum, and Solana, also saw gains.

Driving Factors Behind the Rally

The rally across the crypto market was driven by the release of encouraging consumer inflation data. Core Consumer Price Index figures dropped to 3.2% in December from 3.3% in November, causing a significant decline in U.S. bond yields. Analysts believe that if inflation continues to fall, the Federal Reserve may shift toward a more dovish monetary policy.

Additionally, Stellar Lumens benefited from growing optimism around potential regulatory changes in the crypto industry. The incoming SEC leadership is considering freezing some enforcement actions and seeking public input on crypto regulations. These policy changes could provide a significant boost to the crypto market.

XLM Price Analysis and Technical Indicators

Stellar Lumens’ price rebound followed the formation of a falling wedge pattern, characterized by two converging trendlines moving downward—often considered a bullish reversal signal. Stellar has remained above its 50-day moving average and is approaching the 23.6% Fibonacci Retracement level at $0.5090.

Given these technical indicators, XLM is likely to continue rising, with bulls targeting last year’s high of $0.6400—about 30% above the current price. However, this bullish outlook will be invalidated if the token drops below the key support level at $0.40.

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