Stellar Lumens Soars: What’s Behind the Sudden Surge?
If you’ve been keeping an eye on the cryptocurrency market, you might have noticed that Stellar Lumens (XLM) has been on a tear lately. In fact, its price has skyrocketed to its highest level in over a week, leaving other cryptocurrencies in the dust.
But what’s driving this sudden surge? A God Candle and a 22% Boost
On the price chart, Stellar Lumens formed a “God candle” – a bullish signal that indicates a strong upward movement. And strong it was, with the price jumping to $0.3822, a whopping 22% increase from its lowest level this month.
This rally has brought Stellar’s valuation to over $11 billion, a significant milestone. Partnerships and Utility
So, what’s behind this rally? For starters, Stellar’s utility has been on the rise. The company recently announced a partnership with Fonbnk, a solution that enables frictionless on-ramp solutions for digital banking in Africa.
This partnership allows anyone with a mobile SIM card to access digital banking solutions using Stellar’s technology. It’s a big deal, and it’s clear that the market is taking notice. Ripple Connection
Stellar’s close relationship with Ripple (XRP) is also playing a role in its recovery. Ripple has formed a bullish pennant pattern, which could indicate more gains on the horizon.
And with the potential for friendly regulations in the crypto industry, both Stellar and Ripple could benefit. In fact, there’s speculation that the end of Gary Gensler’s era at the SEC could lead to a more favorable regulatory environment. SEC Appeal and ETF Approval
One potential victory for Ripple is the end of the SEC’s appeal against a ruling that XRP is not a security.
Additionally, there’s a chance that the SEC could approve a spot XRP exchange-traded fund (ETF) later this year. WisdomTree, a company with over $100 billion in assets, has already filed for one. Blockchain Growth
Meanwhile, Stellar’s blockchain is growing rapidly. According to Dune, the network has handled over 1.16 million smart contract invocations, up from almost zero in the same period last month.
And the best part? It’s all happening without any hiccups. Bullish Technicals
So, what do the technicals look like? The daily chart shows that Stellar’s price has rebounded after forming key bullish patterns, including two doji candlestick patterns and a falling wedge chart pattern. These patterns often result in a bullish breakout, and with the price moving above the 50-day moving average and the 50% Fibonacci Retracement, it’s likely that we’ll see more gains.
What’s Next?
In fact, the breakout could lead to a jump to last year’s high of $0.6400, which is about 63% above the current level. Of course, only time will tell, but one thing is clear: Stellar Lumens is definitely worth keeping an eye on.
Reported by Crypto.news
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