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The price of Stellar has boomed 96.69% in the past week to $0.2444. XRP’s recent market performance and this impressive rally show how the two cryptocurrencies are connected.
XLM and XRP have a similar origin. Both have been co-founded by Jed McCaleb and their often co-moved missions of enabling cross-border transactions.
Speculation that SEC Chair Gary Gensler might leave helped skyrocket XRP by 51% to $1.10, giving Stellar investor confidence a serious boost.
This momentum was driven by the market realizing they shared utility and nodes were tied. XLM went up by 25%.
It is no surprise that Stellar’s market cap of $7.3 billion speaks to the large interest and growing bullish sentiment surrounding the digital currency.
That alongside other strong technical indicators points towards continued upward potential. Stellar is enjoying the attention of retail and institutional investors alike.
The growth is massive. Even more upside is possible as long as the bullish trend continues. And XLM needs to break above its previous all-time high of $0.9381.
The data reveals a big upturn in market activity. Liquidity is higher with increased trader participation as the trading volume increases by 51.50% to $1.64 billion.
Investor positioning and confidence with the market take a positive turn. Outstanding derivative contracts open interest rising 20.97% to $133.40 million. This speaks of a strong trading and engagement trend.
Cardano and Stellar Discussions Spark Speculation of Future Cooperation
Cardano’s (ADA) founder Charles Hoskinson has recently laid out the possibility of a partnership with Stellar. Cardano was in talks with Jed McCaleb, co-founder of Stellar; that was unrelated, he revealed while talking about this.
Hoskinson said Stellar were involved in a number of the Cardano efforts they are working on and are talking to the XLM team every day and referred to them as ‘good people.’
This is a hint on an upcoming collaboration or a boost of interaction between Cardano and Stellar, and Hoskinson assured that the discussions are not about a direct partnership.
The tone of the conversation felt positive, as though these two communities could collaborate and even work together on things in the blockchain space in some way, both for the good of each other.
Stellar key Levels to Watch
Stellar is currently holding around $0.250 after it failed to break the resistance at $0.270. Key support is $0.2220.
If this level holds, it will set up a way to $0.400, and if broken, a drop down to $0.230 would suggest a deeper correction.
XLM is still above the middle Bollinger Band, yet a consolidation pattern could indicate that a reversal is about to take place.
MACD indicates a slowing up of upward momentum as a bearish crossover launches, and Awesome Oscillator shows a cooling off of bullish strength as the green bars start to diminish.
It implies that the trend may be corrective, as buyers still dominate the trend.
XLM’s Funding Rates Show Shift from Bearish to Bullish Momentum
XLM funding rate history can present the change of trader sentiment through the course of time.
But through late August and September, funding rates were largely negative, reflecting bearish sentiment, with shorts dominating the market.
By October, funding rates started to stabilize, with moments of bullish spike followed by a tail return to on-chain equilibrium.
But funding rates stayed on the plus side continuously by November as XLM price rallied. Long positions therefore determined dominance, which indicates that traders are more confident about the upward potential of XLM.