Stellar Lumens price staged a strong breakout, crossing a key resistance level as positive sentiment continued to build in the crypto industry. Stellar ( XLM ) surged to an intraday high of $0.4850, its highest level since December 9, marking a 56% increase from its lowest point in December. Its price action mirrored that of Ripple ( XRP ) and other major cryptocurrencies. 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 ( BTC ), Ethereum ( ETH ) and Solana ( SOL ) also saw gains, pushing the combined market cap of all crypto assets to $3.6 trillion. 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. Stellar Lumens also benefited from growing optimism around Donald Trump’s upcoming inauguration and potential regulatory changes in the crypto industry. According to Reuters , the incoming SEC leadership, including Paul Atkins and other Republican commissioners, 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. You might also like: Trump’s SEC plans crypto overhaul, may freeze crypto lawsuits: report The news is particularly positive for Ripple, which has been locked in a legal battle with the SEC for the past four years. Stellar and Ripple are closely related as both focus on cross-border payments. Additionally, Stellar’s founder, Jed McCaleb, was part of Ripple’s founding team. XLM price analysis Stellar price chart | Source: crypto.news The Stellar Lumens token surged to an intraday high of $0.4860, the highest level since December 16. The 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. Additionally, the recent rally has invalidated a double-top pattern that was forming, further supporting the bullish case. 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. You might also like: XRP crypto price crosses $3 for first time since 2018
