Ripple rival Stellar Lumen (XLM) is poised for massive upside momentum as it has formed a bullish price action pattern on the daily timeframe and is now garnering significant attention from traders and investors. On March 19, 2025, as sentiment across the crypto landscape shifts, XLM breached the resistance of the 200 Exponential Moving Average (EMA) on the daily timeframe.
Why is XLM Price RIsing?
This breakout of the resistance level and the shift in sentiment began after the United States Securities and Exchange Commission (SEC) dropped its lawsuit against Ripple Labs.
XLM is currently trading near $0.29 and has surged over 11% in the past 24 hours. This price jump suggests that it is mirroring its rival’s upside momentum. Meanwhile, its trading volume has increased by 135% during the same period, indicating heightened participation from traders and investors following the end of the legal battle.
XLM Price Analysis and Upcoming Levels
Since November 2024, XLM has been on a downward trajectory, forming a falling wedge price action pattern on the daily timeframe. However, with the recent price jump, the asset is approaching the breakout area.
Based on its recent price action and historical patterns, if XLM closes a daily candle above the $0.29 level, there is a strong possibility it could initially soar by 30% to reach $0.37 in the coming days. Furthermore, if XLM sustains this rally and closes a daily candle above $0.35, it could witness another 40% surge, reaching $0.488.
XLM’s Over-Leveraged Levels
With this positive development and bullish price action, traders have begun betting on the long side, as reported by the on-chain analytics firm Coinglass.
Data reveals that traders are currently over-leveraged at $0.2725 on the lower side, with bulls having built $5 million worth of long positions, while $0.3025 is another over-leveraged level where bears hold $2.20 million worth of short positions.
When combining this on-chain metric with technical analysis, it appears that bulls are back and will support the asset in reclaiming its all-time high in the coming days.
