Stellar (XLM), the native cryptocurrency of the Stellar network, has been showing remarkable growth in the past day and week, rising more than 20% and 43% respectively.
XLM has reached a 15 Month high level and is poised for more upward movement, it has risen by more than 68% in just 1 week.
The coin is currently valued at $0.1680 and has a market cap of $4.5 billion, ranking it as the 14th largest cryptocurrency by market cap.
What are the reasons behind this impressive surge for XLM? There are several factors that could be fueling the bullish trend, such as:
Fundamental Factors leading to Rise of XLM:
- The ripple effect (no pun intended) from the recent legal victory of Ripple (XRP), which is a close rival and relative of Stellar. Both coins share a similar mission of enabling cross-border payments and remittances using blockchain technology, and both have faced legal challenges from the US Securities and Exchange Commission (SEC). The judge’s ruling to grant Ripple access to the SEC’s internal documents regarding its classification of cryptocurrencies as securities or not was seen as a major boost for Ripple and the crypto industry in general. This could also have positive implications for Stellar, which has not been sued by the SEC but could benefit from more clarity and certainty in the regulatory environment.
- The increasing adoption and integration of Stellar by various partners and platforms, such as MoneyGram, HoneyCoin app, Circle, Wirex, Grayscale, and others. These partnerships demonstrate the value proposition and use cases of Stellar as a fast, cheap, and scalable network for transferring value across borders and currencies. For example, MoneyGram, one of the world’s largest money transfer companies, recently announced that it will use Stellar’s USDC stablecoin to enable cash-out services in multiple countries. HoneyCoin app, a mobile wallet that allows users to buy and sell digital assets with cash, also integrated Stellar’s USDC to provide more liquidity and convenience for its users. Circle, the issuer of USDC, also chose Stellar as one of its blockchain platforms to support its stablecoin. Wirex, a crypto payment platform, added XLM to its list of supported currencies. Grayscale, the largest digital asset manager, launched a Stellar Lumens Trust to offer institutional investors exposure to XLM.
- The technical strength and innovation of the Stellar network and its development team. Stellar has been constantly improving its network performance, security, and functionality through regular upgrades and protocol changes. The latest upgrade, Protocol 19, introduced two core advancement proposals. The Stellar Development Foundation (SDF), the non-profit organization behind Stellar, has also been actively supporting the ecosystem through various initiatives, such as funding grants, hackathons, educational programs, and community events.
Technical Analysis of XLM:
On daily time frame level the price action of $XLM Formed our descending channel pattern where the price action after an retest level at Horizontal S/R level bounced back impulsively and respecting out Horizontal Resistance level
From where we can expect the more downwards movements.
Conclusion:
With all these positive developments and factors, it is not surprising that XLM has been outshining most of its peers in the crypto market. The coin has broken out of a long-term downtrend and is now targeting the next resistance level at $0.2.
If it can maintain its momentum and break above this level, it could pave the way for more gains in the future. However, as with any cryptocurrency, XLM is also subject to volatility and risks, such as market sentiment, competition, regulation, and hacking.
Therefore, investors should always do their own research and exercise caution before investing in any crypto asset.
For on-demand analysis of any cryptocurrency, join our Telegram channel.
