Stellar Lumens’ native token XLM was among the biggest gainers in the cryptocurrency market in the previous 24 hours, rising by roughly 49 percent in the US dollar-pegged markets.
Major Signals
- XLM price seems to have broken out of a descending parallel channel on the 4-hour chart.
- The digital asset looks poised for a move towards $0.40 within the next week.
- Stellar had a major rally towards $0.411 that started at the beginning of 2021.
Payments-focused Stellar blockchain’s native cryptocurrency XLM has surged to over two-year highs. One analyst says the rally is driven by rival cryptocurrency XRP’s current misfortunes and the U.S. Office of the Comptroller of the Currency’s (OCC) recent guidance on stablecoins.
XLM (+9.09%) changed hands at $0.2990, the highest level since November 2018. The third-largest cryptocurrency by market capitalization has doubled in value so far this week and has gained more than 50% in the past 24 hours, according to CoinDesk 20 data.
XLM also posted some major growth over the past year. According to CoinGecko data, Stellar posted year-to-date returns of over 500%.
As previously reported, Stellar recently won the battle of blockchain payment networks against Ripple amid a major sentiment reversal. This came shortly after the Stellar Development Foundation inked an agreement with the Ukrainian government on Jan. 4, 2021 to collaborate on a new digital asset ecosystem including a central bank digital currency.
The partnership immediately fueled massive XLM growth, resulting in 30% daily gains on Jan. 5.
Despite its ongoing rally, Stellar is still far from its all-time high of $0.78 on Jan. 3, 2018.
Stellar primarily benefited from its accessible upside fundamentals. The open-source blockchain project lately emerged as a viable alternative to its top rival Ripple Labs. Ripple, a San Francisco-based payment firm, landed in a legal controversy with the US Securities and Exchange Commission (SEC) over the alleged illegal sale of its native token XRP.
