Stellar Lumen (XLM) has shown significant price growth amid positive developments in the crypto industry. Following the cessation of the SEC case against Ripple, XLM broke the resistance at 200 EMA, drawing interest from traders and investors.
Why is XLM Price Rising?
The rise in XLM's price began after news broke about the US dropping its lawsuit against Ripple Labs. Currently, XLM is trading near $0.29, having surged over 11% in the past 24 hours. Trading volume has also increased by 135%, indicating heightened interest from traders and investors.
XLM Price Analysis and Upcoming Levels
Since November 2024, XLM had been on a downward trend, forming a falling wedge pattern on the daily timeframe. However, the recent price jump is nearing the breakout area. If XLM closes above $0.29, there is a potential for it to rise by 30% to $0.37 in the coming days. Moreover, if it sustains and closes above $0.35, it could see a 40% surge to $0.488.
XLM’s Over-Leveraged Levels
Amid this positive momentum, traders have begun betting on the long side, as reported by the on-chain analytics firm Coinglass. Data shows over-leveraging at $0.2725, with bulls having built $5 million in long positions, and $0.3025 is another level over-leveraged by bears with $2.20 million in short positions. Combining these metrics with technical analysis suggests that bulls are back to support the asset in reclaiming its highs.
With the end of the SEC case against Ripple and the changing sentiment in the crypto market, XLM shows significant growth potential. Interest from traders may support further price increases.
