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The recent ruling in the Ripple v. the U.S. Securities and Exchange Commission (SEC) case, a landmark victory for the cryptocurrency industry, the judge ruled that Ripple did not break federal securities laws by selling XRP on public exchanges, in a move that sent XRP soaring had a significant impact on the cryptocurrency market, including Stellar (XLM).
Following the favorable news, Stellar witnessed a remarkable surge in its price, soaring by an impressive 104% to reach a peak of $0.196. This surge can be attributed to the positive sentiment generated by the ruling, which was perceived as a potential precedent for the broader crypto industry.
As time has passed since the ruling, the initial surge in Stellar’s price has experienced a cooling-off period. This cooling-off can be attributed to various factors, such as profit-taking by investors or a reevaluation of the long-term impact of the ruling.
The long-term implications for cryptocurrencies, including XLM, remain uncertain and are contingent on further developments in the regulatory landscape. Finbold turned to the price estimates of the crypto community over at CoinMarketCap to gauge their thoughts on the price for Stellar at the end of July.
Notably, the community, with a historical accuracy of 91% based on its 2,630 predictions over the last 6 months, has estimated a bearish average price of $0.09724 on July 31, a (-23%) price drop from the assets price at the time of publication.
Stellar chart analysis
Although the use case for XLM is distinct from that of XRP, the two projects have similar roots, and historically, the values of both have moved in tandem with one another.
The initial surge in the price of XLM was fueled by the fact that the favorable verdict regarding Ripple boded well for the whole cryptocurrency sector in terms of the resolution of regulatory ambiguity.
In spite of a recent surge, investors have started capitalizing on their gains, leading to a downward correction in Stellar prices. Evidently, the token is presently trading at $0.1263, reflecting a minor decline of 0.85% within the day. However, it is worth noting that Stellar has exhibited an impressive upward trend of 25.75% over the previous week, culminating in a substantial market capitalization of $3.4 billion.
Analyzing the current market dynamics, we can identify key levels of support and resistance for the digital asset. A significant support level of $0.11344 has emerged, signifying a price point at which buying pressure could potentially outweigh selling pressure, potentially leading to a rebound.
Conversely, a resistance level of $0.14108 has also materialized, representing a price level at which selling pressure may intensify, potentially hindering further upward movement.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.