Stellar (XLM) Pumps 52% Overnight - Is $0.20 Threshold Ready to Be Busted?

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The Stellar Development Foundation’s peer-to-peer decentralized network, Stellar (XLM), has burst with disruptive price movements in the last 24 hours. Amid a recovery in the broader cryptocurrency market, Stellar underwent a 55% price gain, with a massive increase in trading volume.

While market participants speculate a potential jump to the $0.2 target, it didn’t escape notice that some unique factors might be behind XLM’s impressive gains.

Stellar (XLM) Price Actions in the Last Week

Stellar’s latest price surge ran across its records, including seven-day, 14-day, and 30-day price actions. XLM hadn’t gained much in the past few days due to the bearish outlook in the broader crypto market.

Coingecko data shows XLM saw only three green days between July 8 and July 13, 2023. The token price increased by 1% on July 8, 2.5% on July 9, 0.9% on the 11, and a cumulative 4.1% decline within the stated period.

However, with a single-day price gain of over 55%, XLM has recovered 53.9% in its seven-day growth in value and an over 77% 30-day price increase. As of the time of writing – 5:36 EST, XLM’s price changes hands at $0.15, with an over 55% price increase in the last 24 hours.

Stellar (XLM) Price Outlook

Market data suggests XLM bulls are highly active, attempting to push the price to $0.2. The token already broke out from the $0.1 consolidation level and now eyes $0.2.

XLM is bullish today, trading above the 50 and 200-day Simple Moving Averages (SMA), representing a short and long-term bullish market sentiment. The chart above shows XLM is forming red candlesticks despite its bullish momentum.

The Relative Strength Index (RSI) is 79, depicting an overbought market position. It suggests the buyers are in control. However, the RSI graph is retracing downward, approaching the neutral position, showing the bulls are getting tired and trading volume might drop soon. XLM may likely witness a trend reversal if it succeeds and the bulls take a neutral buying position.

The Moving Average Convergence/Divergence (MACD) is above the signal line, with dark green histogram bars. This observation indicates XLM is currently witnessing a strong rally and could touch $0.2 if it sustains the momentum.

Should XLM traders consider the positive market sentiment on the SMA as a buying opportunity, the RSI could increase, facilitating more rallies for the coin.

However, it is worth noting that cryptocurrencies are highly volatile and subject to several external and internal factors, which could cause a deviation from touted price action. Therefore, it is wise to consider several factors with adequate risk management strategies before investing.

Factors Influencing XLM Price

The Stellar ecosystem is buzzing with news of the launch of Stellar.org’s Sorban, a scaling Smart Contract platform for developers.

State bloat is a problem that plagues smart contracting platforms. Soroban has a fix. https://t.co/uSg9k2gGK1

— Stellar (@StellarOrg) July 13, 2023

Moreover, the news of Ripple Lab’s victory sent a wave of optimism across the XLM community, given that both XLM and XRP share similar fundamentals as payment solutions. It bears mentioning that XRP and XLM share a close relationship since Ripple’s co-founder Jed McCaleb is the founder of Stellar (XLM).

Recently, people questioned why the US SEC labeled Ripple (XRP) as a security while Stellar (XLM) remained unscathed. In a June 11 tweet, Yossin Mobarak, founder of Venture Capital firm Dizer Capital, raised questions about why the SEC spared XLM and went after XRP.

Mobarak’s tweet raised concerns about the multiple delisting of crypto assets on exchanges and whether XLM might soon fall on the regulator’s radar. However, Ripple’s latest victory against the SEC in the securities lawsuit has boosted investor confidence in XLM, a plausible reason for today’s price spike.

In addition, Soroban’s preview release has gone live on Futurenet, a test network. Stellar developers designed the rust-based Smart Contract platform with scalability and sensibility in mind. Soroban aims to eliminate the ledger bloat problem plaguing Smart Contract platforms.

This development must have contributed to XLM’s increased trading volume in the last 24 hours.

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The Thug Life presale has raised over $1.5 million of its $2.58 million hard cap, demonstrating massive investor interest in the token. The token trades at $0.0007 and aims for huge gains on the DEX listing.

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