Top 3 Reasons Why Stellar (XLM) Price Jumped 12% Today

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As a seasoned analyst with over a decade of experience in the dynamic world of cryptocurrencies, I have witnessed numerous market fluctuations and trends that have shaped this burgeoning industry. Today, I find myself analyzing Stellar (XLM), a coin that has caught my attention due to its impressive 12% surge over the past 24 hours.

In the last 24 hours, the value of Stellar (XLM) has jumped by 12%, indicating a robust upward trajectory that’s generating buzz in the cryptocurrency sector. This unexpected price spike coincides with an overall optimistic atmosphere, as Bitcoin and XRP are also witnessing significant increases in value. Here are the top three reasons fueling Stellar’s price surge today:

3 Reasons Stellar (XLM) Price Is Up Today

1. Ripple’s RLUSD Stablecoin Launch Boosts XRP and XLM

The increase in the value of Stellar might be connected to a 15% jump in the price of XRP, as Ripple’s announcement about launching its new RLUSD stablecoin has sparked excitement in the market. In the past, the price of Stellar (XLM) has often mirrored that of XRP, given their common roots and similar concentration on cross-border payment solutions.

Jed McCaleb, Stellar’s founder, was previously part of Ripple’s core team, and both networks target financial institutions and remittance use cases. As Ripple’s developments gain momentum, investor sentiment often spills over to Stellar. The RLUSD stablecoin launch signals further expansion in the Ripple ecosystem, indirectly benefiting XLM. This positive sentiment has fueled buying pressure for Stellar.

2. Broader Crypto Market Rally Led by Bitcoin

Furthermore, the significant increase in the price of Bitcoin has created a favorable climate for the entire cryptocurrency sector, including coins such as Stellar Lumens (XLM). For the first time, Bitcoin reached over $108,000, sparking a fresh wave of optimism across the market. Typically, altcoins mimic Bitcoin’s price hikes.

In the broader crypto market, the focus on high-growth alternatives like Stellar saw its price increase due to the trend. The surge in Bitcoin’s price initiated a chain reaction, causing altcoins such as XLM to rise as well.

3. Stellar’s Strong Network Fundamentals and Increased Activity

The surge in Stellar’s price can be attributed to the strengthening of its underlying network qualities as well. Latest figures show a continuous increase in the number of active accounts on the Stellar blockchain, which has now exceeded 9 million. This growth suggests growing user interest and activity within the system.

In summary, there’s growing enthusiasm among analysts that XLM might reach the dollar mark by the end of December. The bullish pennant chart pattern and XLM’s current position above crucial moving averages indicate continued positive trajectory. A significant breakout beyond the $0.6347 year-to-date peak could draw in more investors, potentially pushing the price towards its previous high of $0.80.

Technical Indicators and Future Outlook

Looking at the technical side, the XLM price is exhibiting positive trends on its daily chart. It’s consistently staying above both its 50-day and 100-day moving averages, suggesting robust support points are in place.

In the chart, we see a positive sign from the Moving Average Convergence Divergence (MACD) indicator, which indicates a possible increase in price. Specifically, the MACD line (represented by blue) has moved above the signal line (orange), suggesting an impending upward trend. Furthermore, the histogram bars have changed to green, signifying growing bullish strength. This crossing pattern implies that buyers are taking charge, and there’s a likelihood of further price increases in the near future.

If XLM exhibits a bearish flag pattern, there’s still a possibility of price adjustment. This could lead to a test of the $0.35 support level. At present, XLM has slightly dropped to $0.4462, which is a minor retreat from its previous high around $0.47. Despite this drop, XLM has managed to increase by 3.06% in the last 24 hours. Notably, trading volume has significantly increased, up by 121.16%, reaching $1.4 billion.

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2024-12-17 21:02