Key Takeaways
- The price of the XLM token has surged by 180% in under a week to hit a yearly peak of $0.634. The bullish market movement has resulted in the cryptocurrency’s market cap surpassing Shiba Inu’s, clocking in at $17.3 billion.
- Digital asset manager Grayscale has increased the XLM holdings in its Stellar Lumens Trust fund by 10%, adding 34.88 million XLM tokens to the investment product.
- One crypto analyst has predicted a $3 to $5 price range for XLM, and the token’s value is expected to surge by 1,617% based on the Adam and Eve bullish pattern on its price chart.
XLM, the native cryptocurrency of the Stellar Lumens blockchain, has seen a remarkable surge in its price over the past week, causing quite a stir in the market. The token’s price skyrocketed a solid 180% to hit a market capitalization of $17.3 billion, surpassing meme coin leader Shiba Inu (SHIB), and is fast approaching the top 10 crypto assets.
Technical Indicators Suggest XLM Is In An Overbought Position
The bullish momentum has pushed XLM’s price from $0.302 to a peak of $0.634 as traders and analysts anticipate the possibility of the token hitting the coveted $1 mark. Stellar’s founder Jed McCaleb highlighted this by referring to XLM as the “most underrated and least understood crypto”.
His statement is consistent with increasing sentiment that Stellar’s potential is finally being acknowledged. The token’s current positive market movement resembles its past price explosions in November 2017 and November 2021, suggesting a cyclical trend. Experts are saying that XLM could soon break out of a long-term descending triangle pattern, leading to a bullish phase if the token breaks past its resistance levels.
Despite the surge in interest for XLM, technical indicators point to an overbought condition. The Relative Strength Index (RSI) for the token has risen to 92, which is way above the 70 threshold for an overbought level. This indicates that a potential price adjustment is brewing in the background.
XLM price has also broken past the upper limit of its Bollinger Bands, which is a measure of market volatility, suggesting that the token may have been overextended.
The token experienced a brief consolidation around the $0.40 mark before breaking through its resistance levels to deliver impressive returns for investors. Investors have noticed that this upward movement is a sign of renewed confidence in Stellar’s future potential. The price of XLM also briefly retraced from its peak as it faced resistance at the $0.55 level, suggesting that the $1 valuation remains a milestone rather than an immediate outcome.
Grayscale Buys Nearly 35 Million XLM To Increase Holdings In Stellar Lumens Trust
Recently, crypto asset manager Grayscale Investments made a 10-K filing with the SEC to increase the net assets of its Stellar Lumens Trust by 10%. Despite the challenges faced by the company about XLM’s price fluctuations and management fees, the trust managed to grow its assets after purchasing an additional 34.87 million XLM worth $3,923.
The filing also outlined that the Stellar Lumens Trust faced losses stemming from the token’s value depreciation earlier in the year. However, this was offset by a robust price recovery and asset inflows into the fund. The document also highlighted the growing institutional interest in Stellar as an investment vehicle, which aligns with the recent uptick in its market performance.
Trading activity around Stellar has also surged, with the derivatives markets experiencing growth in both trading volume and open interest. The trading volume for XRP-backed derivatives rose by 284%, hitting $8.98 billion, while OI in the asset increased by 125% to $393.05 million.
Analyst Predicts $5 Milestone For Stellar Lumens (XLM)
Prominent crypto analyst “Charting Guy” recently shared a prediction that Stellar could achieve a valuation of between $3 and $5. As per his analysis, the price of XLM has been forming a bullish pattern called Adam and Eve on its monthly chart, which is often associated with long-term upward momentum.
However, Charting Guy has asked investors to remain patient, indicating that the current rally could lead to substantial gains for long-term XLM holders. Meanwhile, a potential breakout from this pattern could result in an increase of over 1,500% from its current levels, further cementing optimism in Stellar’s market trajectory.
The main concern is whether XLM can maintain its growth trajectory and reclaim its all-time high as it approaches key resistance levels. Although there is caution, the current rally emphasizes growing interest in the Stellar Lumens ecosystem, rendering XLM a token that should be watched closely in the months ahead.
At the time of writing, XLM is changing hands at $0.5148 – down 5.1% in the last 24 hours.
SEI and Jupiter Gains Whale Attention: Positive Price MomentumAhead!
