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Stellar Lumens surged to the highest level since April 2022 after the spectacular victory by Ripple Labs in a US court. XLM, its token, jumped to a high of $0.20, which was much higher than the year-to-date low of $0.075. Precisely, at its peak, the coin was up by more than 180% from the lowest level this year.
Ripple Labs wins in US court
Stellar is a popular cryptocurrency that has a close resemblance to Ripple. The coin was formed by a Ripple co-founder to facilitate payments around the world. Today, Stellar is best known for being the technology provider to Circle, the creator of USD Coin, the second-biggest stablecoin in the world.
Therefore, Stellar lumens investors were following the SEC vs Ripple case closely. For one, a victory by the SEC would have meant bad news for Stellar and its ecosystem. As a big player in the crypto industry, chances are that the SEC would have launched a separate lawsuit against the company and its creators.
The impact of SEC’s loss is that more companies in the financial services industry will now be open to using Stellar’s technology to facilitate payments. The most popular company that uses Stellar today is MoneyGram, the global payments provider. Other companies are Circle, Coinme, Abra, Anchorage, and Binance among others.
Stellar is also seeking to build a fully decentralized ecosystem with its Soroban project. Soroban is a Rust-based smart contracts platform that is designed for scale. Developers can use the network to build dApps with real-world applications. Still, the challenge is that the ecosystem is yet to gain traction among developers.
Another catalyst for Stellar Lumens is the recent US consumer inflation data. The data showed that the headline consumer inflation dropped to 3.0% in June. There is a likelihood that prices will continue falling in the coming months.
Stellar Lumens price prediction
The daily chart shows that the XLM price made a strong bullish breakout after the SEC vs Ripple victory. As it jumped, the token moved above the important resistance point at $0.115, the highest level in April this year.
Stellar has jumped above all moving averages. It also seems like it has started forming a bullish flag or pennant pattern. In price action analysis, this pattern is usually one of the most popular signs of more gains.
Therefore, while mean reversion is likely to happen, there is a likelihood that XLM price will continue rising in the coming days. If this happens, it will retest this week’s high of $0.1961, which is about 27% above the current level.