- Stellar Lumens price has staged a strong recovery in the past few days.
- The rally is mostly because of the ongoing crypto rally.
- The developers announced a new plan to change transaction processing.
Stellar (XLM) price continued its bullish trend on Wednesday as demand for cryptocurrencies continued rising. Lumens rose to a multi-week high of $0.1060, which was about 32% above the lowest level this month. Despite these gains, the token remains sharply below its all-time high of $0.9302.
Why is the XLM price soaring?
It is unclear why Stellar price has jumped in the past few days. Like most altcoins, it has jumped as investors cheer the recent ETF applications. Blackrock as the first major asset management company to apply for a Bitcoin ETF this month.
Shortly thereafter, other companies like Invesco and WisdomTree filed for similar proposals. The most recent major company to file was Fidelity, one of the biggest privately-owned companies in the United States.
As a result, investors believe that these applications will lead to more inflows from institutional investors in the coming months. Indeed, the most recent data shows that ProShares Bitcoin Futures ETF (BITO) is having the best month this year in terms of inflows. Investors have allocated over $67 million into the fund this year.
The other important XLM news is that the developers tweaked changes to transaction submission in a bid to increase scalability and safety of the network. The new change means that the ability to submit multiple transactions from the same account will be removed. For example, if a Stellar node is handling a transaction from account A, any new transaction from account A will be rejected.
Meanwhile, Bitwage announced an integration with Vibrant to simplify USDC payments. Bitwage is a fast-growing company that provides payroll and freelancer management platform. The partnership will simplify how people are paid using USD Coin, a stablecoin in Stellar’s network.
Stellar Lumens price prediction
Turning to the daily chart, we see that the XLM price bottomed at $0.071 in January this year. Since then, the coin has struggled to move below this level, which is a sign of bottoming. Now, the coin has jumped above the 50-day and 100-day moving averages. It has also jumped above the important resistance level at $0.0936, the highest point this month.
Therefore, I suspect that the coin will continue rising as buyers target the next resistance level at $0.1146, the highest level on April 1st 2023. This price is about 15% above the current level. More upside will be confirmed if it flips this resistance into a support.
