invezz.com
Holders of the Stellar (XLM) token have cause to smile, as the cryptocurrency surged by 30% and outperformed other tokens in the market.
As a result of the performance, it made its way back to the top-ten position in the market, overtaking both Binance Coin (BNB) and Chainlink (LINK) in market cap. Presently, the XLM token has good fundamentals both due to its adoption and its overall development.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
XLM a direct competitor of Ripple
The cryptocurrency is competing directly with XRP in the market, but the latter has been shattered after the recent lawsuit against its parent company Ripple.
After XRP’s price fall, Stellar’s XLM received a massive boost, and the company used the opportunity for the greater good. There was over a 200% rise in the value of XLM within few days after Stellar announced a partnership with Ukraine to roll out the country’s central bank digital currency (CBDC).
Bullish long-term outlook
Presently, Stellar has an overall bullish outlook, which has been boosted by positive news happening around the company. However, its short-term outlook seems to be a bit less bullish, which may not be a good sign for short-term holders.
While other cryptocurrencies recorded lower losses last week, XLM was a bit higher than most. The cryptocurrency recorded about 12% weekly loss, ETH recorded 11.27% loss, while BTC fell by 10% over the same period.
As of press time, XLM is trading at $0.280, representing a 69% increase compared to its value for the previous month. In late last month, XLM made a massive stride after a healthy retracement. But the move recently is slightly shaper. The daily XLM/USD chart faces a dense resistance of above the $0.3 level, with resistant support backed by the 21-day moving average.
Besides, the hourly time-frame of the cryptocurrency has shown how it broke the descending trend with utmost clarity. But experts are still having divergent views about the future movement of the token.
As it stands, XLM is currently the ninth-largest cryptocurrency in terms of market capitalization.