The price of XLM increased by 166% while still strong signs of increasing momentum and there are a few reasons why the coin increased so we will discuss some in our Stellar XLM price news today.
The potential reasons for the XLM rise could be the consolidation of BTC and the technicals showing overbought conditions and social media traction. Once the Bitcoin price broke the $17,000 price level, some altcoins started to rally but based on the market trends that were seen in 2018, some altcoins peaked when BTC peaked and some traders saw limited upside on the number one cryptocurrency started trading altcoins. The altcoins which led the 2018 altcoin mania started to see major rallies at first. XRP increased suddenly from the sub -$4 region to as high as $0.9 on coinbase which allowed XLM and bigger altcoins to increase.
In the near-term, the altcoins faced a roadblock and the price of BTC started consolidating after the relief rally to $17,800 across major exchanges. Considering that the $18,000 level is still a heavy resistance level, the altcoins will demonstrate lower momentum in the short-term. Some altcoins will likely see a resurgence in the upside momentum if BTC breaks out of the $18,000 level but if that happens, other altcoins that have lower liquidity will likely stagnate.
In the foreseeable future, some analysts anticipated the price of BTC to still remain under $18,000 but unless another strong breakout happens, the technical analysts think that the lack of volume over the weekend will make the rally quite questionable. According to Cryptowat.ch a new crypto data provider, the Relative Strenght Index is showing that XLM is in overbought territory, as one analyst said:
“Despite #Stellar correcting lower 37% from it’s $0.23 top, #XLM has bounced back over 11% today & 30% since its recent $0.145 low. $XLM’s daily-RSI is still ‘overbought’ and now rising.”
This also indicates that the buyer demand for XLM was high for quite some time and the frenzy around altcoins as well as the demand with thinner order books led XLM to increase. Stellar’s XLM also saw a trend where it rallies along with XRP so there was a similar cycle this time as well where both assets rallied. Some traders like the pseudonymous technical analyst “Squeeze” pointed out that:
“$XLM is in a bull market on its own and unfazed by $BTC. Previously $XRP was leading $XLM was the laggard. This time $XRP’s the laggard? Still holding spot anyways.”
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