Altcoin

Top 3 Reasons Why Stellar (XLM) Price Jumped 12% Today

Published

5 days ago

December 17, 2024

Stellar (XLM) has surged 12% over the past 24 hours, marking a strong upward trend and drawing attention within the cryptocurrency market. This sudden price movement comes amid broader positive sentiment, with Bitcoin and XRP also experiencing notable gains. Below are the top three factors driving Stellar’s price rally today.

3 Reasons Stellar (XLM) Price Is Up Today

1. Ripple’s RLUSD Stablecoin Launch Boosts XRP and XLM

The rise in Stellar price can be closely linked to XRP recent 15% surge. Ripple’s announcement of its new RLUSD stablecoin launch has created heightened market enthusiasm. Historically, Stellar XLM has shown a strong price correlation with XRP due to their shared origins and overlapping focus on cross-border payment systems.

Jed McCaleb, Stellar’s founder, was previously part of Ripple’s core team, and both networks target financial institutions and remittance use cases. As Ripple’s developments gain momentum, investor sentiment often spills over to Stellar. The RLUSD stablecoin launch signals further expansion in the Ripple ecosystem, indirectly benefiting XLM. This positive sentiment has fueled buying pressure for Stellar.

2. Broader Crypto Market Rally Led by Bitcoin

Additionally, the recent surge in Bitcoin price has provided a bullish backdrop for the entire cryptocurrency market, including altcoins like XLM. Bitcoin surpassed $108,000 for the first time, pushing the market into a new wave of optimism. Historically, altcoins tend to follow Bitcoin’s upward movements.

Stellar price benefitted from this market-wide trend, as traders and investors focused to alternative cryptocurrencies with growth potential. The upward movement in Bitcoin has triggered a domino effect, lifting altcoin prices such as XLM.

3. Stellar’s Strong Network Fundamentals and Increased Activity

Stellar’s price rally is also supported by its improving network fundamentals. Recent data indicates a steady rise in the number of active accounts on the Stellar blockchain, now surpassing 9 million. This growth reflects increasing user adoption and activity within the network.

Furthermore, recent Stellar predictions show increasing optimism among analysts that XLM could approach the $1 mark before December ends. The formation of a bullish pennant chart pattern and XLM’s position above key moving averages suggest further upward momentum. A decisive breakout above the $0.6347 year-to-date high could attract more buyers, driving the price closer to its all-time high of $0.80.

Technical Indicators and Future Outlook

From a technical perspective, XLM price has formed bullish signals on its daily chart. The coin has remained above the 50-day and 100-day moving averages, indicating strong support levels.

Additionally, the 4-hour Moving Average Convergence Divergence (MACD) indicator in the chart displays a bullish signal. The MACD line (blue) has crossed above the signal line (orange), indicating a potential upward momentum in price. Additionally, the histogram bars have turned green, reflecting increasing bullish momentum. This crossover suggests that buyers are gaining control, and the price could continue to rise in the short term.

However, there remains a risk of a price correction if XLM forms a bearish flag pattern. A downward movement could see the price retest the $0.35 support zone. However, at press time, XLM slightly declined to $0.4462, reflecting a modest pullback after earlier reaching highs near $0.47. Despite this dip, the asset remains up 3.06% over the last 24 hours, with a significant surge in trading volume, up 121.16% to $1.4 billion.