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Stellar (XLM) Shoots 12%, Analyst Predicts Further Rally
Stellar, a decentralized blockchain platform enabling seamless cross-border payments, has recently sent the crypto space abuzz. The blockchain’s native token, XLM, gained nearly 12% today, garnering optimism across the industry. This price rally comes against the backdrop of a stockpile of bullish market dynamics. So, let’s take a closer look at them.
Stellar’s On-Chain Data Signals Market Uptrend
According to data streamlined by Coinglass, the cryptocurrency Stellar is currently experiencing a significant market uptrend. Notably, the coin’s Futures OI saw a remarkable 47.24% increase to $42.01 million today. This hinted at increased money inflow within the derivatives market, underscoring investor interest in the asset.
Simultaneously, the derivatives volume surged 229.81% to $184.91 million, hinting at increased trading activity. Coupled with today’s price gains, the derivatives market data points toward increased market enthusiasm for the asset, painting an optimistic scenario at press time.
However, today’s data also illustrated comparatively more short liquidations, sparking investor speculations. Coinglass liquidation data showed $224.18K in short and $59.47K long, sparking concerns over future price movements. However, a recent upgrade to the Stellar network has mainly negated the bearish market sentiments.
Earlier this month, the project introduced Soroban, the smart contract platform on the network, prioritizing performance, sustainability, and security across its ecosystem. This development further magnetizes users and developers from across the globe, staging as a potential bullish factor for long-term prospects.
Also Read: Stellar (XLM) Testnet Upgraded To Protocol 21, Will It Impact Price?
XLM Price Rallies
At press time, the XLM price saw an 11.79% increase in value to rest at $0.102. The token’s 24-hour lows and highs were recorded as $0.09054 and $0.1041, respectively.
XLM’s market cap surged 11.82% to $2.98 billion today, whereas its 24-hour trading volume surged 120.04% to $158.85 million.
Meanwhile, Stellar price analysis by CoinGape Media shows that the weekly technical chart is developing a bullish reversal pattern called the rounding bottom. This means that the downtrend is bottoming as investors showcase a renewed buying interest, as also hinted by the derivatives data.
Additionally, the crypto market analyst Crypto Tony has recently taken to X, spotlighting the token’s potential to challenge its resistance of $1. Market participants may see further upside movements if the token maintains a break above this resistance.
Also Read: Stellar (XLM) Eyes New Era With Mega Upgrade, Will Validators Fall in Line?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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