Stellar Lumens (XLM) has experienced a remarkable surge, reaching its highest point in over a week as it diverged from the downward trend seen in other cryptocurrencies.
The price of Stellar climbed to $0.3822, reflecting a 22% increase from its recent monthly lows. This surge boosted its market capitalization to over $11 billion, signaling strong momentum for the altcoin.
The rally comes amid growing use of Stellar’s blockchain technology. On Tuesday, Stellar’s developers announced a new partnership with Fonbnk, an African fintech company that facilitates frictionless digital banking access through mobile SIM cards. This collaboration marks a significant step in Stellar’s ongoing expansion into digital banking solutions in Africa.
Moreover, Stellar’s price increase also coincides with the bullish performance of Ripple’s XRP, which has been forming a bullish pennant pattern. Both Stellar and XRP are expected to benefit from a favorable political environment following the inauguration of U.S. President-elect Donald Trump later this month. Trump’s pro-crypto stance has fueled optimism among investors in the space.
In addition, Stellar’s ongoing blockchain development continues to attract attention. Data from Dune Analytics shows that Stellar’s network has processed over 1.16 million smart contract invocations, a significant increase from nearly zero last month. The growth of its blockchain infrastructure has been smooth, with no reported disruptions.
Technical Indicators Suggest Strong Bullish Sentiment
On the technical front, Stellar’s price chart reveals several key bullish indicators. A series of Doji candlestick patterns, often a sign of market reversal, has emerged, signaling a potential upward shift. The formation of a falling wedge pattern, characterized by two converging declining trendlines, further strengthens the case for a bullish breakout as the price nears the apex of the pattern.
Stellar’s price has recently broken above both the 50-day moving average and the 50% Fibonacci retracement level, signaling continued upward momentum. Analysts predict that if this trend continues, Stellar could potentially reach last year’s high of $0.6400, representing a 63% increase from its current price level.
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