Stellar Lumens (XLM) has experienced a surge in its price, reaching its highest level since March 2022 and gaining attention in the crypto market. Currently, XLM is trading at $0.1623, representing a 4.24% increase, but it is still around 20% below its peak for the year.
Over the past day, XLM has seen a jump of over 14% in price. Its total market cap has also increased by 15%, reaching $4.4 billion, making it the 20th largest cryptocurrency. The volume traded for XLM has surged by 96% in the same period.
The remarkable performance of Stellar Lumens price this month has propelled its value to new heights. In just the month of July, its price has climbed by over 73%, outperforming many other cryptocurrencies in the top 100. Year-to-date, XLM has seen a surge of over 125% and a 51.75% increase in the past year.
This surge in XLM’s price can largely be attributed to Ripple Lab’s recent court victory against the US Securities and Exchange Commission (SEC), as well as the significant performance of XRP. A US District Judge ruled that about half of Ripple’s XRP sales did not violate investor protection laws. The judge also agreed with Ripple Labs’ argument that XRP is not a security, except when sold exclusively to institutional investors. This court verdict led to a skyrocketing XRP price and subsequently boosted the values of other altcoins, including XLM and Cardano.
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Despite the bullish rally following the court ruling, XLM price has failed to remain above the crucial $0.20 mark. However, there is still a positive sentiment in the market, as indicated by the relatively high trade volumes for XLM. Additionally, XLM’s price increase has coincided with a growing positive correlation with XRP. As of July 27, the two assets had a coefficient correlation of 0.9, suggesting they are moving in near-perfect tandem.
Looking at the 4-hour chart, it is evident that Stellar Lumens price has been on a strong bullish uptrend in recent days. The price broke above a descending trendline, which boosted investor confidence. XLM has also surpassed the 25-day and 50-day exponential moving averages, indicating renewed bullish momentum. The Relative Strength Index (RSI) currently stands at 61, just 9 points below the overbought zone.
Based on these factors, it is likely that XLM price will continue to rise in the medium term, driven by improved sentiment and growing bullish momentum. The next resistance levels to watch out for are $0.1815 and $0.1980. However, if the price drops below the bullish support at $0.1515, it would invalidate the bullish thesis.
In conclusion, Stellar Lumens price has experienced significant growth in recent weeks, reaching its highest level since March. This surge can be attributed to Ripple Lab’s court victory and the positive performance of XRP. With renewed bullish momentum and improved sentiment, XLM is likely to continue its upward trajectory. However, it is important to monitor support and resistance levels to gauge the sustainability of this bullish trend.
