The Stellar price found a strong resistance level at a key level this week. The XLM token rose to the important resistance at $0.4215. It has risen by about 64% from the lowest level in October, bringing its total market cap to about $9.8 billion.
What happened? The strong Stellar lumens price rebound coincided with the recovery of digital currencies. In the past few weeks, the prices of key coins has risen substantially. Ethereum and Bitcoin prices soared to their all-time highs. Historically, cryptocurrency prices tends to have a close correlation with one another.
Fundamentally, Stellar’s network has been growing steadily in the past few months. The number of active wallets has risen. Similarly, the market capitalization of USDC, which was built using Stellar’s technology has surged to more than $34 billion.
This trend will likely continue ahead of the Protocol 18 upgrade. The vote happened last week and the developers expect that automated market maker (AMM) protocol functionality will roll-out in the coming months. Indeed, Ripple also announced that it will soon open up its liquidity platform to financial services companies.
Looking ahead, the next key catalyst that will move the Stellar price will be the upcoming event that will take place next week. This event will bring the leading players in Stellar’s ecosystem.
The daily chart shows that the spectacular XLM price rally has faded. A closer look shows that this rally has faded at an important resistance level. The coin struggled moving above this level several times in the past few months. The price is also along the 38.2% Fibonacci retracement level. At the same time, it is being supported by the 25-day and 50-day moving averages.
Therefore, a bullish breakout can’t be ruled out for now. This breakout will happen when the price moves above the key resistance at $0.4215.
This post was last modified on Nov 10, 2021, 05:21 GMT 05:21