Stellar Lumens price continued rising on Monday, as Bitcoin crossed the resistance at $101,000 and as the crypto fear and greed index moved to the greed zone. 

Stellar (XLM) rose to $0.4630, gaining nearly 50% from its December low, as previously predicted. 

The rally happened as most cryptocurrencies bounced back. Bitcoin (BTC) recovered from last month’s low of $92,000 to $101,500, while tokens like Injective, SPX6900, Worldcoin, and Render surged by over 10%.

Stellar’s gains were also influenced by Ripple’s (XRP) bullish momentumRipple recently formed a bullish pennant pattern, signaling potential further gains. Some analysts expect that Ripple will surge to $100, a 4,066% jump from the current level.

XLM often mirrors XRP’s performance due to their shared history and similar roles in the crypto industry. Jed McCaleb, Stellar’s founder, was a key founding member of Ripple.

However, Stellar’s network faces significant challenges. The first major issue is its stagnant ecosystem, which does not justify its $13 billion market cap. The network only hosts 11 dApps in its DeFi ecosystem, with a total value locked of $53 million. 

In contrast, Base — a layer-2 blockchain launched in 2023 — has accumulated over $3.87 billion in assets and $3.7 billion in stablecoin volume. Stellar, despite positioning stablecoins as a core feature, has only $161 million in stablecoins on its network.

Stellar price analysis

The daily chart shows that Stellar’s price peaked at $0.6376 in December before bottoming at $0.300, aligning with the lower boundary of the Murrey Math Lines trading range.

XLM has since formed a falling wedge pattern, a bullish chart formation. The token has broken above the wedge’s upper boundary and a key support and resistance pivot point.

Stellar remains above the 50-day moving average and the Ichimoku cloud indicator, suggesting continued bullish momentum. The next critical resistance target for bulls is $0.6375, representing a potential 40% upside from the current price. However, a drop below the $0.30 support level would invalidate the bullish outlook.