The XLM price has staged a major recovery recently after it emerged that the Stellar Development Foundation (SDF) was in talks to acquire MoneyGram. The Stellar Lumens price has risen to $0.2763, which is about 40% above the lowest level last week.
What happened? There are several catalysts pushing the XLM price higher. First, last week, it was reported by credible media sources like Bloomberg that Stellar was in talks to acquire MoneyGram. This was notable news since MoneyGram is one of the leading players in the money transfer industry. As a result, the combination, which will be in the range of more than $1 billion, will expose XLM to a global audience.
Second, the general trend in the crypto industry has been supportive of Stellar price. In fact, the leading digital currencies like Bitcoin and Ripple have all surged. As a result, their total market cap has jumped by more than 7.5% in the past 24 hours, bringing the total gains to more than $1.52 billion. This performance is because of the support they have received from key players like Elon Musk and Amazon.
Finally, the coin has risen because of the macro environment as the number of Covid cases rise. This performance will force the Fed to hold steady in the upcoming meeting.
XLM price prediction
I wrote a relatively bullish article on Stellar Lumens last week shortly after it reported its quarterly results. Since then, the coin moved and formed a double-bottom pattern at $0.2024. The coin then jumped in line with the falling wedge pattern. In price action, this pattern is usually a bullish sign. Today, the coin remains below the 50-day and 100-day moving averages.
Therefore, the bullish breakout will be confirmed once the price moves above the two moving averages. On the flip side, a move below the support at $0.2025 will invalidate the bearish view.
Stellar price chart
Follow Crispus on Twitter.