The cryptocurrency market has been buzzing with excitement ever since the announcement of the Crypto Strategic Reserve. Stellar (XLM), the native token of the Stellar network, saw a significant surge in its price, although it did not reach the heights that some investors were hoping for.
As of March 3, 2025, XLM has experienced a 5% increase in the past 24 hours, bringing its price to around $0.33. In comparison, its competitor XRP has seen a much more substantial increase during the same period.
Despite this upward movement, XLM is facing resistance at the $0.36 level, a historical barrier for the token. However, it has managed to reclaim the crucial support level of $0.31, indicating a potential bullish trend.
Technical analysis experts have noted that XLM is forming an inverted head and shoulders pattern on the daily chart, with a neckline at $0.365. If the token continues to rise and breaks above this level, there is a strong possibility that it could surge by 40% to reach $0.50 in the near future.
During a recent price dip, XLM successfully tested its 200-day Exponential Moving Average (EMA), confirming its uptrend and showcasing its bullish momentum.
On-chain metrics also point to a bullish outlook for XLM, with investors and traders showing confidence in the token and accumulating positions. Data from CoinGlass reveals a significant outflow of $2.45 million worth of XLM tokens from exchanges in the past 24 hours.
Traders are currently bullish on XLM, with major liquidation levels set at $0.318 and $0.339. Bulls have built $2.90 million in long positions at the lower level, while bears hold $2.18 million in short positions at the $0.339 level. However, these positions are subject to liquidation depending on the direction in which the price moves.
Overall, the sentiment surrounding XLM is positive, with technical analysis, on-chain metrics, and trader behavior all pointing towards a potential upward trajectory for the token. Investors will be closely watching to see if XLM can break through its resistance levels and continue its bullish momentum in the coming days.