Stellar has been on watch the last week due to its technical setup. As previously reported, XLM was showing signs of a potential +25% run due to historical price action. XLM price has done more than that, surging nearly +39% the last week. What’s next?
Stellar ( XLM ) Price
As mentioned in a recent Stellar report, it was argued that XLM could witness a +25% rally due to historical metrics. The last 7 trading sessions, XLM has rallied almost +40%. In terms of a list of the top cryptocurrencies by market capitalization, Stellar and Cardano have been the out-performers. This week in general has been bullish for many digital assets, but we take a look at the initial XLM technical analysis to further explain the price action.
Stellar ( XLM ) Technical Analysis
Recently, it was noted that XLM could start a +25% bull run if it could surpass resistance at .05 regions. This week, Stellar cracked that resistance, which fueled the rally. It was also noted that if .05 was accepted, XLM would most likely test .065 resistance.
This week, XLM did just that. Most recently, .065 resistance level was challenged and accepted. Based on technicals right now, Stellar could very well test .075 to the upside. This would result in additional +13% upside from current levels. On the flip side, .065 support level should be on watch. If Stellar dips back below .065, it could signal a short term “cool off” phase fueled by profit takers. With Stellar experiencing +40% growth the last week, this is definitely a technical risk to watch for. As long as XLM price can hold the key support at .065, we will be watching for the .075 test to the upside.
Stellar ( XLM ) Transactions
Aside from initial technical analysis, it was mentioned that Stellar transactions could be a catalyst for the recent rally. Almost a week ago, the figure below was shared to outline how strong the Stellar network was this month. As of April 22nd of this month, Stellar was nearly outperforming all the top cryptocurrencies every day ( Bitcoin, Ethereum, and XRP ) in terms of daily transactions. It’s worth noting that at the time of the original report, digital asset markets were flat and Stellar was showing strong utility despite the lack of bullish sentiment that existed at the time.
For the last week, Stellar has maintained almost 2,000,000 daily transaction counts. In context, Bitcoin has been well below 500,000 / day for months. The chart below shows that since original reporting, XLM has still maintained very strong daily output. With the increased transaction data, many investors are waiting for material news to hit the market. There tends to be a lot of rumors surrounding IBM. Back in 2019, IBM launched “World Wire” which was a payment system that was powered by the Stellar blockchain. At the time, it was mentioned that 6 international banks were connected to the payments system. This meant that the banks would either use XLM tokens, or they could introduce stablecoins on top of the IBM service. It will be interesting to see if any updates are shared this year.
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