In recent times, the blockchain payment project Stellar (XLM) has witnessed substantial growth, primarily attributed to a surge in adoption by institutional investors. This ascent comes as its closest rival, Ripple Labs, grapples with regulatory hurdles stemming from programmatic XRP sales.
Stellar Lumens (XLM) has not only managed to navigate these challenges but has also thrived, forming strategic partnerships with prominent entities such as BlackRock, Circle USDC, and humanitarian aid organizations.
Despite its success, the price of XLM has been closely mirroring the fluctuations of XRP, owing to market speculation about regulatory implications. According to the latest cryptocurrency market data from Tradingview and Coingecko, XLM was trading at approximately $0.1245 against the United States dollar on Friday, marking a decline of about 2.54 percent over the past five days.
XLM Price Analysis
Digital asset analyst Egrag Crypto, a well-known figure in the crypto community, shared insights on the X platform. Egrag Crypto suggests that Stellar Lumens (XLM) could be on the verge of a significant breakout, potentially exceeding $1 in value.
This bullish outlook is contingent on a cross between the 21 Exponential Moving Average (EMA) and the 200 Moving Average (MA) in the weekly time frame. If this bullish crossover materializes in the coming months, Egrag Crypto anticipates a staggering price rally of over 500 percent, reaching approximately $1.10.
Notably, the analyst draws parallels between the current bear market for XLM and the one experienced between 2018 and 2021. Presently, the XLM price is undergoing a retest of the support level at approximately 11 cents, which coincides with the 50 Moving Average (MA) on the weekly timeframe. However, the stability of this support level is under threat due to prevailing bearish sentiments within the crypto market.