Stellar (XLM) is relatively new in the market, but this crypto has been remarkable with a strong rally in recent times, and it is now even more impactful than before. The price nearly doubled over the past few weeks with XLM price increasing from a low of $0.22 to a peak of around $0.44 on July 15th. In addition, XLM increased 83% over the last week which included a 13% within 24hours. This rate of performance has awarded XLM with a position as one of the best performing coins since its inclusion in the top 50.
Source: Coindesk Japan
Examining XLM’s Price Movement
XLM was performing flat until the end of June, within the range of $0.21 - $0.25. The bearish market we saw for the better half of 2023 changed course on June 25 as the coin began a stable ascent.
The greatest slingshot moment took place in the early days of July, where July 10th saw a lot of bullish volume igniting the market, especially after breaking past the $0.33 resistance level. Buying sentiment was driven significantly higher and only two days later, XLM touched $0.41 which was its highest value since February. July 13 saw XLM consolidating support near the 44 cent mark but for now, the newly formed support/resistance zone the price seems to be settling around the $0.38 - $0.40 range.
Source: Coinmarketcap
Significant Capital and Increased Participation in the Market
Driving this surge is a notable rise in trading activity, especially within the futures markets. Open interest—representing the total value of outstanding futures contracts—has soared to $345 million. This indicates growing confidence among both institutional and retail investors.
Trading volume has also seen a threefold increase since early June. On-chain metrics bolster the optimistic outlook, with active addresses rising by 13% and transactions increasing by 16%. Moreover, the latest data update from DeFi Llama has played a role in this rally. Stellar’s DeFi ecosystem is now valued at a market capitalization of $627 million.
Technical Breakout: Is $0.45 the Next Target?
A significant technical achievement was the breakout above $0.33, which was a previous resistance level and the 'neckline' of a double bottom chart pattern. This traditional formation generally indicates a shift from a downtrend to an uptrend.If this pattern continues to unfold, XLM may be poised to reach $0.45—a target that is now attainable.
However, not all indicators are positive. The Relative Strength Index (RSI) is presently around 79, suggesting that the asset could be overbought. A short-term correction would not be unexpected. If this happens, earlier support levels at $0.38 and $0.33 might prove resilient.
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Source: Coinmarketcap
Final Thoughts: Stellar Shines Bright
In spite of the possibility of short-term fluctuations, the overall perspective for XLM remains optimistic. The price is influenced by a mix of robust trading volumes, technical breakout formations, and increasing on-chain activity.
With momentum increasing, Stellar (XLM) is emerging as one of the most robust altcoins in the market—both from a technical and fundamental standpoint.