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Stellar (XLM) has risen by 12% in the last 24 hours, attracting the attention of the cryptocurrency market. This surprising climb coincides with significant price moves on other major cryptocurrencies, such as XRP and Bitcoin.
XLM has historically exhibited a strong price correlation with XRP, and the current rise is no different. This pattern continues as XRP has recently made big gains.
XRP has gained over 15% in the last 24 hours, most likely due to enthusiasm surrounding the launch of Ripple's RLUSD stablecoin. Given their shared history and similar blockchain focus, market sentiment frequently spills over to Stellar as Ripple and the XRP Ledger ecosystem expand.
Another factor fueling XLM's rise could be the redistribution of funds within the crypto market. Bitcoin has slightly retraced from its current all-time high of $107,859, prompting investors to look for opportunities in potential altcoins. Stellar appears to have caught some of this momentum.
Stellar XLM price action
After days of fluctuating between $0.402 and $0.453, XLM suddenly ticked higher in today's trading session, reaching highs of $0.471.
At the time of writing, XLM was up nearly 12% in the last 24 hours to $0.45. Its 24-hour trading volume has likewise surged 197% to $1.37 billion, according to CoinMarketCap data.
XLM has mostly held in a broad range since achieving yearly highs of $0.638 on Nov. 24. Stellar experienced a price rise in November, culminating in highs not seen since May 2021.
Bulls' attempt to rekindle the rally hit a wall around $0.605 on Dec. 2, prompting XLM to retreat to the lower part of the range, with support at $0.3544.
Looking ahead, a surge above $0.60 and then $0.64 might kickstart a fresh uptrend for XLM price. On the other hand, in the case of declines, support is envisaged at $0.354 ahead of the daily MA 50 at $0.312.
In separate news, Stellar has issued a warning to the crypto community, noting an increase in reports of scammers and wallet drainers in recent weeks. Crypto holders are warned never to click links from unknown sources and report any suspected scammers.