Stellar (XLM) price has seen a similar meteoric rise in the XRP token over the past 24 hours. This rise was due to The news that rippleThe company behind XRP has won its long-running lawsuit against the US Securities and Exchange Commission (SEC).
The case of the Securities and Exchange Commission (SEC) deeming XRP to be a security item has been the focus of the trial in court. To the delight of the crypto community, Judge Annalisa Torres of the US District Court for the Southern District of New York ruled in favor of Ripple, declaring that the XRP token is not a security.
Stellar appears to be among the top 20 cryptocurrencies
Bearish pressure has dominated the altcoin market in recent weeks due in part to the Securities and Exchange Commission (SEC) declaring Solana, Polygon and Cardano related tokens as securities. The announcement formed the basis of the regulator’s case against prominent cryptocurrency exchanges Coinbase and Binance.
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Having said that, the market came back to life yesterday after Ripple was declared the winner in court, with most of the tokens basking in the green. Stellar was also quick to react to the positive market sentiment, with its price up almost 90% in just a few hours.
The token’s price has since stabilized, with Stellar currently trading with a gain of 52.4%. With this said, the surging price of XLM makes it among the biggest daily gainers in the cryptocurrency market today.
As of this writing, XLM is valued at $0.147189, with a price drop of 3.9% in the last hour. The token has a 24-hour trading volume of more than $1.26 billion, which is up 3,386% over the past day.
according to CoinGecko DataStellar token is approaching a position in the top 20 cryptocurrencies, with a market cap of nearly $4 billion.
Can $0.8 be reached for XLM?
A look at the broader market shows that XLM has been disappointing in recent days. Although the token posted some significant gains last month, it also appears to have been affected by the harsh market conditions in July.
After yesterday’s positive price movement, investors are hoping to see XLM price visit $0.8 again. However, after hitting an all-time high of $0.875563 in 2018, the coin has only reached the $0.8 level once.
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On the weekly chart, the XLM coin should overcome the resistance at the $0.2 and $0.4 price levels. Therefore, it would take extraordinary bullish pressure for Stellar to reach $0.8 again.
XLMUSD trading at $0.146982 | Source: chart from TradingView
However, the Relative Strength Index (RSI), an indicator that tracks the balance between buying pressure and selling pressure for a coin, indicates that the current bullish momentum may be waning.
The daily RSI crossed above the 70 mark, which represents the overbought area. This indicates that buying pressure is peaking, and a reversal may be on the horizon.
Featured image from Shutterstock, chart from TradingView