Stellar (XLM), the decentralized blockchain platform that aims to revolutionize the world of cross-border transactions and digital asset transfer, has emerged as one of the most promising cryptocurrencies in the market today.
With its recent rise, Stellar has received a lot of attention and is fast becoming one of the biggest winners of the day. As the price of Bitcoin continues to rise, it has sparked renewed interest and enthusiasm in the overall cryptocurrency market, which altcoins like Stellar are benefiting from.
This bullish momentum is a testament not only to the platform’s technological advancements, but also to the growing recognition of its potential to disrupt traditional financial systems.
XLM is rallying strongly, but traders should watch out
XLM recently witnessed a remarkable 4.6% rally in a 24-hour period, pushing the price to $0.109, as reported by CoinGecko. In addition, XLM has shown a significant increase of 22.6% in the past seven days. These positive price movements have caught the attention of both investors and traders, indicating an optimistic sentiment in the market.
XLM up 4.6 in the last 24 hours. Source: Coingecko
Despite the encouraging rally, a new one XLM Price Report advises traders in a higher time frame to stay prepared for a possible range rather than a breakout above a critical resistance level. On the 1-day price chart, the $0.0935 level represents the previous low for XLM.
However, on June 27, the price successfully broke past this resistance level with significant trading volume. This breakout was followed by consecutive days of upward movement, with no significant retracement, indicating a strong bullish trend in the market.
XLM price trajectory in the last week. Source: CoinMarketCap
Looking ahead, if XLM experiences a dip in the coming days, the $0.1 level could potentially serve as a support level for the cryptocurrency. This implies that if the price falls back, there is a higher chance of finding support around $0.1, providing some stability to XLM’s price action.
Correlation between Bitcoin and Altcoins
Historically, Bitcoin has shown a positive correlation with many altcoins. This means when The price of Bitcoin is rising, altcoins tend to follow suit, reinforcing the overall bullish sentiment in the market. The recent rally in Bitcoin has likely created a favorable environment for altcoins, including XLM, leading to their upward price moves.
XLM market cap currently at $3 billion on the weekly chart: TradingView.com
However, it is essential to note that while altcoins often experience a positive correlation with Bitcoin during bullish phases, their performance can vary. Some altcoins may outperform Bitcoin, while others may underperform. Therefore, it is critical for investors and traders to thoroughly research and analyze the specific factors that influence each altcoin’s price trajectory.
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image of Forex Academy
