Stellar (XLM), the decentralized blockchain platform aiming to revolutionize the world of cross-border transactions and digital asset transfers, has emerged as one of the most promising cryptocurrencies in today’s market.
With its recent surge, Stellar has garnered significant attention and is rapidly becoming one of the biggest gainers of the day. As Bitcoin’s price continues to climb, it has sparked renewed interest and enthusiasm in the overall cryptocurrency market, benefiting altcoins like Stellar.
This bullish momentum is not only a testament to the platform’s technological advancements but also to the growing recognition of its potential to disrupt traditional financial systems.
XLM Shows Strong Rally, But Traders Should Watch Out
XLM has recently witnessed a notable rally of 4.6% within a 24-hour period, propelling its price to $0.109, as reported by CoinGecko. Moreover, over the past seven days, XLM has demonstrated a significant surge of 22.6%. These positive price movements have captured the attention of investors and traders alike, signaling a bullish sentiment in the market.
Despite the encouraging rally, a new XLM price report advises higher timeframe traders to remain prepared for a possible range rather than a breakout beyond a crucial resistance level. On the 1-day price chart, the $0.0935 level represents the previous lower high for XLM.
However, on June 27, the price successfully broke past this resistance level with substantial trading volume. This breakout was followed by consecutive days of upward movement, without any significant retracement, indicating a strong bullish trend in the market.
Looking ahead, if XLM experiences a dip in the coming days, the $0.1 level could potentially serve as a support level for the cryptocurrency. This implies that if the price retraces, there may be a higher chance of finding support around the $0.1 mark, offering some stability to XLM’s price action.
Correlation Between Bitcoin And Altcoins
Historically, Bitcoin has exhibited a positive correlation with many altcoins. This means that when Bitcoin’s price surges, altcoins tend to follow suit, amplifying the overall bullish sentiment in the market. The recent rally in Bitcoin has likely created a favorable environment for altcoins, including XLM, leading to their upward price movements.
However, it’s essential to note that while altcoins often experience a positive correlation with Bitcoin during bullish phases, their performance can vary. Some altcoins may outperform Bitcoin, while others may underperform. Therefore, it’s crucial for investors and traders to conduct thorough research and analyze the specific factors influencing each altcoin’s price trajectory.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Forex Academy