Stellar Lumens (XLM) price has surged 61% in a single day. This has made it one of the best-performing cryptocurrencies of this week, together with XRP. The latest surge in XLM might be surprising for many new crypto enthusiasts.
However, the reason behind this bullishness in XLM price lies in its relation to the XRP, which we’ll discuss in this article. After a massive surge on Thursday, the price of Stellar Lumens slid by 7% today. The coin seems to be absorbing the selling pressure before moving further.
Stellar Lumens was co-founded by Jed McCaleb, who also co-founded Ripple. According to the report, Jes McCaleb leveraged Ripple’s tech in building Stellar Lumens. However, despite their similarities, both projects target different clients.
As SEC declared Ripple’s XRP to be not a security, this caused an exponential surge in the XRP coin. The news also raised the Stellar Lumens price due to its similarities and history with Ripple. In light of Ripple’s judgment, analysts are betting on XLM coin also not being declared a security.
The latest analysis reveals that despite an exponential surge on Thursday, XLM price maintains a bearish market structure on the weekly chart. Only a weekly closure above the $0.13 level can flip this outlook to bullish. Therefore, this week’s candle closure will be very critical for future price action.
Stellar Lumens price prediction will flip extremely bullish if it closes a week above the $0.13 level. In such a case, the first target for the bulls will be the next resistance level of $0.23, which is 67% above the current price. However, BTC price needs to break above $31,000 for this setup to play out.
In the meantime, I’ll keep sharing updated XLM forecast and my personal trades on my Twitter, where you are welcome to follow me.
This post was last modified on Jul 14, 2023, 15:53 BST 15:53