Stellar (XLM) Skyrockets 18% to Outpace XRP in Bullish March Start

Stellar (XLM) has experienced a notable surge, skyrocketing 18% on March’s first day. At the time of writing, Stellar (XLM) was up 18% to $0.302 after reaching intraday highs of $0.3086, extending Friday’s rebound from lows of $0.252.

This increase has allowed XLM to outpace XRP in recent performance, indicating a positive start to the month. XRP, the fourth largest cryptocurrency, was up 12% in this time frame to trade at $2.15.

While XRP also has significantly rebounded following Friday’s market rout, it has not matched the recent momentum exhibited by XLM.

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The latest spike in XRP and XLM prices comes amid a bearish week for the crypto market, which saw significant liquidations. On Monday, a severe sell-off resulted in nearly $1.5 billion in liquidations across various crypto assets. The bearishness persisted, with an additional $952 million in liquidations on Friday, highlighting the market’s recent volatility.

The sell-off was triggered by external factors, including macroeconomic uncertainties, which dampened investor sentiment. These conditions prompted a rapid devaluation of several cryptocurrencies, leading to forced liquidations as margin calls were triggered.

Stellar (XLM) price action

XLM declined at January’s close to trade between its daily SMA 50 and 200 at $0.372 and $0.253, where it currently is.

A break above or below the daily moving averages of 50 and 200 would spell the next direction trend. While eyes are on where Stellar trends next, according to Ali, the cryptocurrency is forming a bullish flag, which could trigger a massive breakout. A bull flag is a trading chart pattern that forms during a period of consolidation within an upward trend. The same bullish flag pattern was spotted on XRP, resulting in an over 500% increase that saw its price reach a seven-year high of $3.39 mid-January.

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According to Ali, Stellar may see a similar surge in the event of a breakout, predicting a 330% surge to $2. On the contrary, if bearish pressure returns to the market, Stellar (XLM) could find support between $0.23 and $0.20.