Stellar Lumens token price rose for the third consecutive day as the market reacted to the latest Ripple Labs and Securities and Exchange Commission (SEC) settlement. The XLM token rose to $0.103 on Thursday, up over 30% from its lowest point this year.
It joined Ripple, whose XRP token jumped to $0.6178, 43% higher than its lowest level this week. Its 24-hour shorts liquidations rose to over $11 million.
The main catalyst for Stellar’s price action was the SEC’s settlement with Ripple Labs. In the ruling, Ripple Labs was asked to pay $125 million, much lower than the $2 billion the SEC sought. This ruling was seen as another big win for Ripple Labs.
Ripple and Stellar Lumens are two different companies but closely similar. They were both created to solve the challenge of cross-border money movement. Ripple uses the On Demand Liquidity (ODL) concept, where XRP is a key part, while Stellar’s key element is the use of stablecoins, especially USD Coin (USDC).
Most importantly, Stellar was created by Jed McCaleb, a computer programmer who helped found Ripple.
On-chain data shows that Ripple’s XRP saw more activity after the judge’s ruling. According to Santiment, wallets holding between 1 million and 10 million coins on the XRP Ledger hold over $7.06 billion in coins valued at over $4.42 billion.
This ruling also has other implications for Stellar and other companies in the industry. First, these firms can battle the SEC in court and win.
Second, it is possible that a financial company will now apply for a spot in Ripple and Stellar ETF. The key hindrance to this is that, while they are big cryptocurrencies, they are less liquid and active than Bitcoin and Ethereum.
Third, Stellar could now do more deals with companies since the two are always associated. Previously, it has inked partnerships with companies like Franklin Templeton and MoneyGram.
Stellar Lumens price forecast
The XLM token bottomed at $0.075 on Monday as cryptocurrency prices imploded. It then formed a long-legged doji candlestick pattern, explaining why it has risen in the past three days. In most cases, a doji is one of the market’s most popular bullish reversal signs.
Stellar has risen above the 50-day moving average, while the Relative Strength Index (RSI) has crossed the neutral level of 50. Therefore, chances are that the XLM price will continue rising as buyers target the key resistance point at $0.1126, its highest point on July 17. A break above that level will point to more upside.
