Stellar Lumens price has been trading around its highest level since March 2022 for the past few weeks, catapulting itself into the forefront of the crypto market frenzy. At the time of writing, the asset was trading 4.24% higher at $0.1623 but nearly 20% below its highest level this year.
The XLM price has jumped by more than 14% over the last day with its total market cap and total volume traded increasing by 15% and 96%, respectively over the last day. The asset has a total market cap of $4.4 billion, positioning it as the 20th largest cryptocurrency after Dai and ahead of Chainlink.
What’s Driving XLM?
Stellar Lumens price has staged a significant recovery this month, propelling its value to new heights. The asset’s remarkable performance has seen its price climb by more than 73% in the month to date, outperforming the top 100 rosters of cryptocurrencies. Notably, XLM price has soared by more than 125% in the year to date and 51.75% in the past year.
XLM’s outstanding surge is primarily attributed to Ripple Lab’s landmark court win against the US Securities and Exchange Commission and the significant performance by XRP which is up by 111% in the year to date.
US District Judge Analisa Torres ruled that roughly half of Ripple’s sale of its XRP token did not violate federal-investor protection laws. Judge Torres agreed with the argument made by Ripple Labs that XRP is not a security. However, the judge ruled that XRP was a security when sold exclusively to institutional investors. The verdict by the federal court saw the XRP price skyrocket, propelling other altcoins, including XLM and Cardano to climb in value.
The rally following the federal court’s verdict in favor of Ripple failed to hold the XLM price above the crucial $0.20. However, it seems like the bulls are still in charge, characterized by the relatively high XLM trade volumes. The period of XLM’s price increase has occurred alongside the token’s growing positive correlation with XRP. As of July 27, two assets had a coefficient correlation of 0.9, suggesting they are moving in a near-perfect tandem.
Stellar Lumens Price Prediction
The 4-hour chart shows that the Stellar Lumens price has been on a strong bullish uptrend over the past few days. The XLM price broke above the descending trendline shown in yellow, boosting investors’ confidence. The digital asset has managed to break above the 25-day and 50-day exponential moving averages, pointing to renewed bullish momentum. Its Relative Strength Index (RSI) is currently at 61, 9 points below the overbought zone.
Therefore, the XLM price is likely to continue rising in the medium term amid improved sentiment and growing bullish momentum. As such, the next resistance levels to watch will be $0.1815 and $0.1980. However, a move below the bullish support at $0.1515 will invalidate the bullish thesis.
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