- XLM, the native cryptocurrency of the Stellar blockchain, has outperformed the stagnant crypto markets with a 2% price increase in the last 24 hours.
- The cause of XLM’s recent surge remains uncertain, but it follows a cryptic tweet hinting at an upcoming event in 10 days.
The native cryptocurrency of the Stellar blockchain, XLM, is taking the lead in the mostly stagnant cryptocurrency markets today, exhibiting an impressive 2% price increase within the last 24 hours.
This recent upswing pushed the XLM price to its highest point of the week at $0.126, marking an almost 5% gain. XLM, boasting a market capitalization of $3.4 billion, presently holds the rank of the 22nd largest cryptocurrency globally.
Though the exact catalyst behind the recent XLM surge remains uncertain, it comes after a cryptic tweet or post on Twitter/X from Saturday hinting at an upcoming event in 10 days. The post encourages followers to prepare for an upcoming transformation that has generated considerable excitement.
Change is in the air, and the category is: brand. We’re bringing #Stellar to the real world in 5 days.
Keep your eyes locked! pic.twitter.com/0X5ENxu7Xz
— Stellar (@StellarOrg) September 7, 2023
Advocating streamlined international payments
The Stellar blockchain, recognized for its emphasis on simplifying cross-border transactions and empowering the creation of digital assets, strives to offer cost-effective and effective options for financial institutions and individuals seeking to move value. The Stellar Foundation has formed significant alliances to pursue this objective, such as partnering with stablecoin issuer Circle and the money transfer firm MoneyGram International.
Furthermore, in August, the Stellar Foundation acquired a minority stake in MoneyGram.In the previous month, intending to enhance the platform’s accessibility to a broader audience, the organization responsible for XLM’s development also disclosed its participation in the Bytecode Alliance. This industry consortium advocates for the advancement of WebAssembly (Wasm), the technology enabling developers to create high-performance web-based applications.
Several prominent technology entities and associations established the Bytecode Alliance, including Mozilla, Fastly, Red Hat, and Intel.
Stellar initially signaled its transition to Wasm in April 2022, citing the technology’s robust execution environment for smart contracts and its thriving ecosystem. Observers perceived this action as contributing to constructing a secure, scalable system that fosters equitable access.
Santiment Report Highlights Bearish Sentiment
The recent surge may also align with the observations made in a recent report from Santiment. The report emphasized that XLM had been facing increased bearish sentiment and mounting pressure from the crypto community to engage in short selling.
Santiment stated,
Stellar is the noteworthy asset showing potential for a minor breakout. XLM has consistently been a target for short positions among traders, and the resulting liquidations could potentially drive the price higher.
However, it’s important to note that funding rates in the XLM market have been negative. This further underscores the prevailing bearish sentiment in the cryptocurrency market during this period. Additionally, the decreasing Open Interest rates observed support the notion of declining demand for XLM, a trend that emerged in August.
Currently, the XLM OI-weighted funding rate registers at -0.0269%. A negative funding rate indicates a bearish sentiment, indicating that short positions are more prominent. Hence, the recent surge in XLM’s value appears fragile because it relies mainly on excitement and may lack robust support.
XLM Price Analysis
XLM has surged by 0.97% in the past 24 hours, reaching $0.12. Over the last seven days, the token has also gained 6.61%
XLM’s 24-hour trading volume has also surged, increasing by 5.89%, with approximately $98 million exchanged as traders entered the market to capitalize on the momentum.
After experiencing a decline, XLM initiated a recovery on September 3, which has persisted until now, reaching intraday highs of $0.126. The price range between $0.128 and $0.133 is pivotal for potential upward movements for XLM. Conversely, XLM confirms its support level around the $0.11 mark.
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