On Monday, the cost of Stellar Lumens increased further, coinciding with Bitcoin surpassing the $101,000 resistance level and the cryptocurrency fear and greed index shifting into the ‘greed’ region.
Stellar (XLM) rose to $0.4630, gaining nearly 50% from its December low, as previously predicted.
The rally took place as the majority of cryptocurrencies regained their footing. Bitcoin (BTC) rebounded from its previous low of $92,000 to reach $101,500, while coins such as Injective, SPX6900, Worldcoin, and Render experienced a significant increase of more than 10%.
The rise in Stellar’s value was also fueled by the strong upward trend of Ripple (XRP). Lately, Ripple has shown signs of forming a bullish pennant pattern, which often indicates more growth to come. Some financial experts predict that Ripple could soar to $100, representing an increase of approximately 4,066% from its current price level.
Stellar Lumens (XLM) frequently follows Ripple’s (XRP) lead in terms of performance, given their common origins and comparable functions within the cryptocurrency market. Notably, Jed McCaleb, who established Stellar, was an original co-founder of Ripple.
As an analyst, I find myself grappling with the state of Stellar’s network, as it presents substantial hurdles. The most pressing concern is the stagnation within its ecosystem, which seems to be at odds with its impressive $13 billion market capitalization. At present, there are only 11 decentralized applications (dApps) operational in Stellar’s DeFi landscape, with a combined total value locked of $53 million.
Compared to Stellar, Base – a layer-2 blockchain introduced in 2023 – boasts an impressive amassment of assets totaling over $3.87 billion and a substantial $3.7 billion in stablecoin trading volume. On the other hand, despite emphasizing stablecoins as a key component, Stellar has managed to garner just $161 million in stablecoins on its network.
Stellar price analysis
The daily graph indicates that Stellar’s price reached a high of $0.6376 in December and then dropped to $0.300, which corresponds to the bottom end of the Murrey Math Lines price band.
As a researcher, I’ve observed that XLM has transitioned into a falling wedge pattern, a constructive chart configuration often associated with bullish sentiments. Notably, the token has breached the upper limit of this wedge, which doubles as a significant support and resistance pivot point.
The graph shows that Stellar consistently hovers above its 50-day moving average and the Ichimoku cloud, indicating a persistent upward trend. If things continue as predicted, the next significant resistance point for buyers could be around $0.6375, which translates to approximately a 40% increase from the current price. However, it’s important to note that if Stellar falls below the $0.30 support level, this bullish forecast might need to be reconsidered.
Read More
- 15 Charged for converting Drug Cartels’ Cash into Cryptocurrency in U.S.
- XRP Price Eyes $2 Support Level Amidst Market Correction
- OREO Unveils Six New Products for 2025
- PYTH PREDICTION. PYTH cryptocurrency
- ‘Brides’ Finds a Distributor in Neon for Latest New Vampire Horror Movie
- India signals no fixed timeline for crypto rules, calls for global alliance
- ‘Fast and Furious’ Star Paul Walker Remembered 11 Years After His Death
- TROTOAR Gallery Bridges Local and Global Art with ‘That’s What’s Up!’
- Apple Lands Anya Taylor-Joy Led Drama ‘Lucky,’ Based on Bestseller
- Google’s Willow Quantum Chip Sparks Bitcoin Security Debate
2025-01-06 20:42