Stellar (XLM) is arguably the biggest success story in the booming cryptocurrency market of late, as the digital coin has skyrocketed in value over the last seven days. In the past 24 hours, trading volumes for the digital asset have shot well above $3 billion. This increase has launched it into the top ten traded commodities/assets. This powerful performance has allowed Stellar to outperform both Bitcoin (BTC) and Ethereum (ETH) in the current crypto bull run.
The price of Stellar (XLM) has rallied 110% as of writing this in just six days, showcasing its incredible momentum. It recently hit a high of $0.5166 before retreating back to $0.4565. According to analysts, Stellar can retake the $0.50 level and target a breakout to at least $0.58. On the downside, a move under $0.43 might invalidate the bullish setup, triggering a move down to the $0.38 support area.
Stellar's Market Performance
Additionally, Stellar (XLM) recently ascended to a $14.23 billion market cap, gaining a significant hold within the top 10 cryptocurrencies. Its 24-hour trading volume comes in at $3.27 billion, reflecting robust investor interest and liquidity. At a 24h volatility of 1.9%, Stellar is more volatile than the average cryptocurrency.
Stellar’s recent price surge has seen it become one of the best performers amongst its layer-1 competitors, surpassing a 109% rise. This exceptional performance highlights the increasing optimism surrounding the Stellar network and its prospects for long-term expansion.
That kind of strong momentum is always pretty damn impressive. The current deviation from the 20-day Simple Moving Average (SMA) suggests a near-term retracement towards $0.4302. Traders will want to keep a close eye on this level, as it may be an important support zone.
Technical Analysis and Price Prediction
A detailed technical analysis of Stellar’s XLM price action shows a bearish to neutral long term outlook. The upper wick on Friday’s candle gives a pretty clear signal that bulls will see resistance around the $0.50 mark. Once you’re able to move past this resistance, you will unlock the potential for big wins. Not doing so will lead to a further period of consolidation or even a possible retreat.
If Stellar’s bullish momentum continues, market experts are anticipating a breakout towards the $0.58 level. This target is also Fibonacci extension levels and prior resistance zones. While traders position for upside potential, they must be cognizant of the downside risks. As such, a breakdown beneath $0.43 would invalidate the bullish setup and might spark a sudden drop off towards the $0.38 area.
Stellar’s RSI (Relative Strength Index) is currently sitting in overbought territory, indicating that Stellar is likely ripe for a correction. The good news is that the Moving Average Convergence Divergence (MACD) is still bullish – a sign overall that the move upwards is not yet over. Traders can do well to align multiple technical indicators that point towards the same conclusion to make better, more informed trading decisions.
Market Sentiment and Future Outlook
In fact, Stellar (XLM) has continued to be popular, as evidenced by market flows during the intraday. This strong demand suggests that investors are optimistic about the future of the Stellar network and its potential to disrupt the financial industry.
Stellar, a decentralized open payment protocol with a mission to connect the world’s financial infrastructure quickly and at minimal cost. The network operates on their shared native cryptocurrency, XLM. It acts as bridge currency between multiple fiat currencies and pays transaction fees.
Beyond this, the Stellar network has achieved notable traction over the past few years. We’re seeing many organizations starting to use it to help move payments and remittances. The network’s scalability, higher capacity, and connectivity makes it an attractive option to businesses and individuals. Its small transactions costs make it very simple to conduct cross-border payments.
