- Stellar Lumens price has pulled back in the past few days.
- This price action coincides with the coinciding Bitcoin and Ripple.
Stellar price has pulled back in the past few days, ending a spectacular rally that started on March 10. XLM, its native token, was trading at $0.1145, the highest point since November 4. In all, lumens have jumped by ~50% from the lowest point this year.
Why has XLM rally faded?
Stellar price has been in a strong bullish trend in the past few days. This rally was in line with the spectacular performance of cryptocurrencies as Bitcoin jumped to almost $30,000. In most periods, cryptocurrencies tend to have a close correlation with each other. This also explains why XLM price has retreated considering that BTC has pulled back to $28,000.
Stellar, as I wrote in this report, also jumped because of the strong performance of Ripple’s XRP. The two cryptocurrencies have a similar origin considering that they XLM’s founder, Jed McCaleb, was also a co-founder of Ripple.
Read more: How to buy Ripple.
Ripple rallied last month as investors predicted that the ongoing case will end soon. As such, there is a feeling that a victory by Ripple will be a positive catalyst for Stellar.
Read more: How to buy Stellar Lumens.
Stellar also rallied after the ongoing adoption. Last week, CoinMe, a leading crypto exchange announced its integration with USD Coin (USDC). USDC is a leading stablecoin that was created by Circle, an American company, using Stellar’s technology.
The partnership means that Coinme’s users can transact using USDC to make faster payments that are cheaper than fiat currencies. This is important since Coinme has one of the biggest networks in the industry, with over 40k retail locations.
The other reason why Stellar price has done well recently is because of the upcoming launch of Soroban, Soroban is a smart contract platform on Stellar that will open up more decentralized innovation on the network. Once launched, it will help to eliminate the need for automated market makers and sponsored reserves.
Stellar price prediction
The daily chart shows that the XLM price has been in a strong bullish trend in the past few months. This comeback started when the coin dropped to a low of $0.70 in December last year. It has managed to move above the important resistance point at $0.097, the highest point on February 21st.
The coin has also moved above the 25-day and 50-day exponential moving averages while the Relative Strength Index (RSI) has moved slightly below the overbought level. Therefore, I suspect that Stellar will resume the bullish trend, with the next reference point to watch being at $0.1297, the highest point on October 9.
