Why Stellar’s latest development could put XLM back on the investor radar
Most of the cryptocurrencies in the market didn’t show major moves as of 19 July. However, XLM begged to differ as this latest development put XLM in a position of power.
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XLM bulls deliver strong performance despite slowdown in volatility across the market.
Stellar’s USDC plans might be playing a role in XLM’s demand.
Stellar’s native cryptocurrency XLM has maintained an overall bullish bias even as other top coins have seen some slowdown. This means those that have been holding it since May or June are up considerably. This growth might be tied to growing confidence as Stellar’s future becomes brighter.
Read Stellar’s [XLM]price prediction 2023-24
XLM was off to a great start at in Q1 during which it rallied by over 60%. Unfortunately for the bulls, it gave up those gains in Q2. However, the bulls came back strong since the second half of June and have so far rallied to price levels last seen in May 2022.
XRP tops the list of mid-week gainers
XLM exchanged hands at $0.159 at press time which was a bit of a pullback from the $0.196 peak on 13 July. Its press time price represented a 111% gain from its lowest price point in June. This makes it one of the best-performing cryptocurrencies in the top 50 list by marketcap. It was certainly the top performer in that list in the last 24 hours.
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A few points to note about its price chart. XLM was oversold at press time. Also, the Money Flow Index (MFI) indicated that it had been experiencing some outflows despite the recent upside. Perhaps a sign of profit taking. All this was taking place alongside a surge in social dominance and the daily trading volume.
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The social dominance surge in the last two days confirmed that XLM was indeed on the receiving end of more attention. As such, it had been experiencing higher trading volumes. But this may also indicate that exit liquidity could kick in. At press time, most top cryptocurrencies weren’t bullish, hence there stood a significant chance that XLM will revert to being correlated with Bitcoin.
Can XLM sustain the current levels?
We should not rule out the chances of more upside or sustained levels. Especially if we consider one of the main reasons for the current excitement. The Stellar blockchain is currently at the forefront of digital dollar rollouts across the world.
Stellar has reportedly teamed up with South America’s crypto company Bitso. The collaboration will facilitate the integration of Stellar’s Anchor network, making it easier to use USDC for payments in multiple countries.
This includes Mexico, Columbia, and Argentina. The network’s long-term goals include establishing a global reach. Achieving this goal would likely unlock robust growth while unlocking more utility and demand for XLM.
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