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Stellar ($XLM) faces an unusual price volatility test amid the ongoing market fluctuation in the broader cryptocurrency space. This is despite having registered 3.61% growth in the last 30 days as the asset continues its upward momentum. The volatility trend has triggered a drawdown in volume over the past 24 hours.
Sudden Stellar price swings spark investor caution
According to CoinMarketCap data, the $XLM volatility is evident in different metrics. The coin rose from a low of $0.2735 in a massive spike to hit a high of $0.2804 within a short space on the crypto market.
Around $154,400,000 in Stellar were traded over the past 24 hours, despite the reversed gains.
$XLM took a wild turn after attaining the peak and plunged back to its low of $0.2735, reversing all gains achieved. The volatility has persisted as $XLM climbed to $0.2783 again before maintaining sideways movement.
The volatility comes just after the $XRP rival surged by over 35% to flip the Ripple-backed token in on-chain activity. Market participants had expressed concerns that the development could trigger the witnessed volatility.
Interestingly, the surge appeared natural and technically convincing, fueling hope in some quarters of a further climb.
Some have speculated that the rise in Stellar might have been fueled by the asset's growing utility. Additionally, $XLM is known for fast, low-cost cross-border payment, just like its rival, $XRP.
Is broader market volatility behind $XLM roller coaster?
As of press time, $XLM is changing hands at $0.2768, representing a 1.08% decline in the last 24 hours. The volatility might have caused investors to pull back, as trading volume has dropped by 8.39% to $154.44 million.
$XLM could stabilize and resume its upward quest, given the asset’s recent performance and penchant for shunning a bearish slowdown. In a quiet move last month, $XLM managed to outpace its rival by staying in the green as $XRP slipped into the red.
Some $XLM holders have remained bullish, insisting that the current bull-bear showdown in the ecosystem is not peculiar to Stellar. The past few days have been marked by market fluctuation in the digital asset market.