The crypto market has experienced a significant rally following Trump’s ‘crypto reserve’ proposal. This proposal hopes to boost the US crypto industry by holding select crypto assets.
While Donald Trump did not mention HBAR and XLM specifically, these altcoins were among the top gainers and traders speculated that they might have been included. However, the subsequent correction took some of their weekly gains.
Hedera’s price dropped 20% to $0.2271 from its daily high of $0.2845. At the same time, Stellar also declined 20% and stabilized at $0.2977.
Both are among the top 15 biggest crypto assets, which improves their odds. If they make it into the reserve, the effect would be similar to taking a large quantity of tokens out of circulation. As a result, most major altcoins saw significant price increases after the announcement.
The rally for Hedera and Stellar started even before the announcement. Since Friday, Stellar has gone from its monthly low of $0.2529 to a peak of $0.3602, registering more than a 44% rally. Hedera saw a similar performance, recovering from its monthly low of $0.2352 and peaking at $0.2845.
What’s Next For Hedera and Stellar?
Earlier catalysts for HBAR experienced several high-profile partnerships. For one, Snoop Dogg partnered with Tune.FM, a Hedera-based streaming platform. Its native token, JAM, rose more than 200% after the announcement. Moreover, news has dropped that the payment platform Swift will leverage Hedera’s technology.
These partnerships triggered a breakout for the HBAR price, which is still trading above its 200-day and 50-day Simple Moving Average (SMA). The token will likely see resistance at the 10-day SMA of $0.26296, while support is at $0.217.
Source: TradingView
At the same time, the Stellar price was following HBAR’s momentum. Its price is trading above the 200-day and 50-day SMA, indicating strong momentum. However, the token will face stiff resistance at the $0.32 and $0.36 levels.
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