2024-11-23 12:37 |
Stellar Lumens price continued its remarkable bull run, making it one of the best-performing cryptocurrencies in the industry. Its XLM token has gone parabolic, rising for four consecutive days, and reaching its highest level since 2021. It is up by more than 523% from its lowest level last year.
What is Stellar Network?Stellar is one of the most popular blockchain networks that focuses on the payment industry. It was established by Gavin Wood, a Ripple co-founder, to enable people to move money around the world in an easy way.
In particular, Stellar can be used in peer-to-peer payments, real-world asset tokenization, on and off-ramps, and aid distribution.
One of its biggest successes has come from its partnership with Circle, the company behind USD Coin, the second-biggest stablecoin in the industry. Over $300 million of USD coins have been issued on the network.
The other important partnership was with Moneygram, one of the top companies in the remittances industry. This partnership makes it possible for users to send and receive stablecoins in thousands of Moneygram locations.
Stellar has also partnered with Franklin Templeton, an asset manager with over $1.5 trillion in assets under management. This partnership has helped the company launch a tokenized fund that has attracted over $430 million in assets. Other top partnerships that Stellar has made are with companies like Felix, Bitso, and Fireblocks.
Why is the Stellar price rising?Stellar price is soaring for several reasons. First, the jump is part of the ongoing crypto bull run that has helped push the market cap of all coins to over $3 trillion. Bitcoin’s market cap has jumped to over $1.8 trillion, making it a top-five asset globally.
Second, investors have embraced a risk-on sentiment as evidenced by the soaring fear and greed index, which has moved to the extreme greed zone of 88. In most cases, altcoins like Stellar do well when there is a sense of greed in the market.
Analysts expect that this trend will even accelerate when the altcoin season starts. Data shows that the altcoin season index is at 35, meaning that it needs to more than double to get to the alt season.
Third, and most importantly, Stellar price has jumped because of the good news happening in Ripple. XRP price has soared as investors anticipate that the Trump administration will be more friendly to the crypto industry.
This is notable because Ripple Labs has spent millions of dollars in litigation against the SEC. Most recently, it was ordered to pay a $250 million fine, much lower than the $2 billion that the agency was seeking. The SEC has also filed an appeal to some of the rulings.
Therefore, analysts believe that the Trump SEC will be more lenient to crypto investors. It could even decide to end the cases and hit the reset button.
The implication of this is that Ripple could go public next year and also make more deals with other companies. Historically, XRP and XLM have had some correlation.
Read more: Ripple vs. SEC: XRP’s fate hangs in balance as legal battle unfolds
XLM price forecastThe weekly chart shows that the Stellar Lumens price has staged a strong comeback in the past few weeks. This is a notable breakout because it happened after the coin spent almost two years in a deep consolidation. It has now soared above the key resistance level at $0.20, its highest point in June 2023.
Stellar has jumped above the 50-week and 200-week Exponential Moving Averages (EMA). It has also moved to the 50% retracement level. Therefore, while the bullish trend is still intact, I suspect that the coin will have some mean reversion and dive in the coming days because it has gotten highly overbought.
The post Here’s why Stellar price is surging and why XLM may slip soon appeared first on Invezz
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