The price of Stellar Lumens continued to rise on Monday, as Bitcoin crossed the $101,000 resistance level and as the cryptocurrency Fear and Greed Index moved into greed territory.

excellent (XLM) to $0.4630, up nearly 50% from December lows I expected earlier.

The rally occurred as most cryptocurrencies rebounded. Bitcoin (Bitcoin) recovered from the lowest level recorded last month at $92,000 to $101,500, while Tokens such as Injective, SPX6900, Worldcoin and Render rose more than 10%.

Stellar's gains were also affected by Ripple's gains (XRP) Bullish Momentum Ripple recently formed a bullish pennant pattern, indicating further potential gains. Some analysts expected The price of Ripple will rise to $100, a jump of 4,066% from the current level.

XLM often mirrors the performance of XRP due to their shared history and similar roles in the cryptocurrency industry. Jed McCaleb, the founder of Stellar, was one of the main founding members of Ripple.

However, Stellar Network faces significant challenges. The first major issue is its stagnant ecosystem, which doesn't justify its $13 billion market cap. The network hosts just 11 dApps in its DeFi ecosystem, with a total locked value of 53 million dollars.

In contrast, Base – a layer 2 blockchain launched in 2023 – has amassed more than $3.87 billion in assets and $3.7 billion in stablecoin volume. Although Stellar puts stablecoins as a core feature, it only has $161 million worth of stablecoins on its network.

Star price analysis

The daily chart shows that Stellar price peaked at $0.6376 in December before bottoming at $0.300, which is in line with the lower end of the Murrey Math Lines trading range.

XLM has since formed a falling wedge pattern, which is a bullish chart formation. The token broke through the upper border of the wedge and a key support and resistance pivot point.

The star remains above the 50-day moving average and the Ichimoku Cloud indicator, indicating continued bullish momentum. The next crucial resistance target for the bulls is $0.6375, which represents a potential 40% upside from the current price. However, a drop below the $0.30 support level would invalidate the bullish outlook.