Stellar’s native cryptocurrency, Lumens (XLM) in the prior week had traded around $0.065 where it had been held tight within a consolidation bout. In a bull streak, XLM rose to set fresh highs of $0.098 last Thursday.
This rally saw Stellar (XLM) bullish momentum it incurred in the last few days and weeks extended with its ripple effect spilling over into its market capitalization with an increase of over $600 million seen.
XLM price rallied despite Bitcoin lackluster performance which remained stuck beneath $9,500.
Stellar (XLM), 14th crypto asset with a market cap of $1.8B, and a 24-hour volume of $535.2M however had its upside momentum fade away as it approached a key resistance level to plunge to lows of $0.082 in the process.
However, in a recovery mode, XLM rose slightly while pushing towards the local highs earlier set.
XLM/USD Daily Chart
Stellar (XLM) is currently trading at $0.088, slightly down by 2% since the day’s start.
On-Chain Indicator Reveals Stellar Recent Rally Had an Anomaly Factor With XLM Social Volume Forging a Local Top
Stellar (XLM) bullish momentum to set fresh yearly highs could be said to have been steered by the large volume and a growing sentiment amidst its investor base.
However, from a basic point of view, it seemed the recent rally was rather spurred by investor hype rather than on XLM underlying strength as it is currently showing some signs of weakness after a strong rejection that sparked an intense price drop.
Data from on-chain analytics firm Santiment indicated that this latest rally seems to be an anomaly because, from historical antecedents, on-chain development activity normally increases concurrently with Stellar’s price. On the contrary, this recent rally saw a decline in on-chain development activity while social volume stood at an 8-month high.
Data via Santiment
Santiment stated further that the XLM’s peaking social volume is showing signs of a local top being forged indicating that the hype supporting this recent rally may soon fade into oblivion spurring an attendant price decline alongside.
Bitcoin’s consolidation bout has given Altcoins viable opportunity to surge, therefore until Altcoins see immense buying pressure like in afore time, there are likely chances that Stellar (XLM) bullish momentum may be stalled.
Despite this, some analysts are staunchly bullish on XLM ’s mid-term outlook, noting that XLM bulls could propel price ahead despite the weakness it has been portraying recently.
Another trader opined that Stellar could soon reach as high as $0.13 if bulls defend the key support level beneath its trading.
If this bullish scenario holds sway, XLM may see a huge price jump as large as 50% in the days ahead.
Image Credit: Santiment, Shutterstock