Stellar (XLM) Emerges as a Compelling Alternative Amidst XRP's (XRP) Meteoric Rise

Sharing historical and functional similarities with XRP, Stellar is well-positioned to benefit from the same positive sentiment driving XRP's explosive rally.

Cryptocurrency Stellar (XLM) is emerging as a compelling alternative to XRP (XRP) following the latter’s meteoric rise. Here's why XLM could be a promising buy now.

After XRP’s 31% single-day gain, Stellar (XLM) could be the next best cryptocurrency to buy. XRP’s explosive rally, fueled by optimism surrounding the SEC's announcement of Gary Gensler’s resignation in January, has pushed the token's market cap to a staggering $82.9 billion. This incredible momentum has reignited excitement across the cryptocurrency space, leaving investors eager to identify the next big opportunity in the market.

Now, as XRP’s rally appears to be nearing its peak, Stellar (XLM) is presenting itself as a promising alternative for those who feel they may have missed the XRP surge. Here's a closer look at what's driving XLM's impressive rally and why it could be a smart buy now.

Stellar (XLM) price todayStellar (XLM) price live chartStellar (XLM) technical analysis

Stellar, co-founded by Jed McCaleb, shares XRP’s mission of enabling fast, low-cost cross-border transactions. As XRP gained momentum on the back of optimism surrounding regulatory clarity, XLM quickly followed suit.

The token’s technical indicators are pointing to strong upward potential. Stellar is trading well above its 200-day simple moving average, with 20 green days in the past 30, reflecting a 67% success rate in recent trading sessions. Furthermore, trading volume has surged by 51.50% to $1.64 billion, signaling heightened market activity and improved liquidity.

Over the past year, Stellar has gained 152% in value, outperforming 70% of the top 100 cryptocurrencies. Currently, the token is approaching a critical resistance level at $0.30901. A successful breakout could pave the way for further gains, with analysts projecting a target of $0.4101.

Given Stellar’s significantly smaller market cap compared to XRP, the token requires less capital to double in value, making it a highly attractive option for investors seeking substantial upside.

From a trading perspective, Stellar offers an appealing entry point. Current support is established at $0.23015, providing a potential buy zone for those awaiting a pullback.

Analysts recommend keeping a close eye on Stellar’s next targets, with $0.3475 and $0.4101 identified as key levels. To manage risk, traders are advised to set stop-loss orders below $0.2006.