Stellar (XLM), a decentralized blockchain platform that aims to revolutionize the world of cross-border transactions and transfers of digital assets, has emerged as one of the most promising cryptocurrencies in today’s market.
With its recent surge, Stellar has garnered a lot of attention and is quickly becoming one of the biggest gainers of the day. As the price of Bitcoin continues to rise, it has sparked renewed interest and enthusiasm in the cryptocurrency market in general, and has benefited from altcoins such as Stellar.
This bullish momentum is not only a testament to the platform’s technological advancement but also to the growing recognition of the potential to disrupt traditional financial systems.
XLM is showing a strong rally, but traders should pay attention
XLM recently saw a significant uptick of 4.6% over a 24-hour period, pushing its price to $0.109, as reported by Queen Gekko. Moreover, over the past 7 days, XLM has shown a significant rise of 22.6%. These positive price movements captured the attention of investors and traders alike, which indicates an upward trend in the market.
XLM up 4.6 in the last 24 hours. Source: Coingecko
Despite the encouraging rise, new XLM price report She advises higher time frame traders to stay prepared for a potential range rather than break out beyond the crucial resistance level. On the one-day price chart, the level at $0.0935 represents the previous high-low of XLM.
However, on the 27th of June, the price managed to clear this resistance level with a large volume. This breach was followed by consecutive days of bullish movement, without any significant bounce, indicating a strong bullish trend in the market.
XLM price trajectory in the last week. Source: CoinMarketCap
Looking ahead, if XLM sees a decline in the coming days, the $0.1 level is likely to act as support for the cryptocurrency. This means that if the price rebounds, there may be a higher chance of finding support around the $0.1 mark, which provides some stability to XLM’s price action.
Correlation between bitcoin and altcoin
Historically, Bitcoin has shown a positive correlation to many altcoins. This means that when Bitcoin price hikeAltcoins tend to follow suit, amplifying the general upside in the market. It is possible that the recent rally in Bitcoin has created a favorable environment for altcoins, including XLM, which has led to their bullish price movements.
XLM market cap currently at $3 billion on the weekly chart: TradingView.com
However, it is important to note that although altcoins often see positive correlation with Bitcoin during bullish phases, their performance can vary. Some altcoins may outperform bitcoin, while others may underperform. Therefore, it is crucial for investors and traders to thoroughly research and analyze the specific factors that influence the price path of each altcoin.
(The content of this website should not be interpreted as investment advice. Investing involves risk. When you invest, your capital is at risk).
Featured image from Forex Academy