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In the ever-changing cryptocurrency landscape, XLM, the native digital currency of the Stellar blockchain, has recently experienced an enormous surge in its price. Over the past few weeks, Stellar has been gaining widespread recognition as an efficient and low-cost digital payment network, attracting a growing number of users and businesses.
Additionally, investor sentiment received a major lift following Ripple’s major legal victory against the US Securities and Exchange Commission (SEC). Notably, US judge Analisa Torres ruled that XRP is not an unregistered security, introducing a fresh optimism boost for the strongly correlated XLM.
The aforementioned set of catalysts propelled XLM to new heights, with the crypto token now targeting $0.20 – a milestone price point it last reached in April 2022.
XLM price analysis
At press time on July 20, XLM was trading at $0.17, up 21.6% in the past 24 hours.
Over the past week, XLM saw its price surge around 75%, while its monthly gains stand at an astonishing 112%. Over the past 30 days, Stellar’s market cap skyrocketed from $2.13 billion to $4.56 billion.
From a technical standpoint, the crypto asset is in a good place. In particular, XLM is trading well above its major moving averages (MAs) after its price surge last week helped it clear key resistance levels.
Supposing that bullish pressure remains strong, Stellar could go as high as $0.24 during this run, where its next strong resistance zone is located.
With the latest price jump, Stellar has been the best-performing cryptocurrency on daily charts for two consecutive days.
Why is XLM rallying?
There is a string of factors that contributed to Stellar’s remarkable rally. Most notably, XLM is significantly correlated with XRP due to its shared objectives and underlying technology.
The two cryptocurrencies soared sharply last week after Judge Torres ruled that Ripple did not violate federal securities regulations by selling XRP on public exchanges.
More recently, XLM has also been boosted by Stellar’s major partnerships that are facilitating the adoption of its payment solutions. On July 19, leading Latin American crypto exchange Bitso integrated Stellar’s Anchor Network to allow companies worldwide to make low-cost USDC payments to Argentina, Mexico, and Colombia.
Meanwhile, Coinbase, the second-largest cryptocurrency exchange in the world, also integrated with Stellar recently and now fully supports USDC deposits and withdrawals through its blockchain network.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.