Stellar Lumens price has soared for three consecutive weeks, moving to its highest level since January 2022. The XLM token has soared to a high of $0.2695, up by over 230% from its lowest point this year, bringing its market cap to over $7.5 billion, making it the 24th biggest coin in the industry.
Stellar Lumens price has more upside
The weekly chart shows that the XLM price has formed a strong comeback in the past three weeks. It has crossed the important resistance level at $0.1955, its highest swing in June 2023, the neckline of the triple-bottom pattern.
Stellar has jumped above the important resistance level at $0.2, the 78.6% Fibonacci Retracement level. It has also moved above the 50-week Exponential Moving Average (EMA), while the Market Value to Realized Value (MVRV) has moved above the key point at 3, pointing to potential gains.
The MVRV is an important metric that looks at whether the coin is overvalued or undervalued by comparing its current market cap to its realized cap. While a figure of 3 is a sign of overvaluation, it can also be an indicator of momentum.
Similarly, the Relative Strength Index (RSI) and the Stochastic Oscillator have moved upwards, a sign of momentum. Therefore, there are odds that the Stellar Lumens price will continue rising as bulls target the 50% Fibonacci Retracement point at $0.4660, which is about 90% above the current level. A drop below the support at $0.2425 will invalidate the bullish view.
XLM token to succeed in payments
The main fundamental catalyst for the Stellar Lumens price is the ongoing Ripple bull run. XRP has jumped by 285% from its lowest level this year as investors anticipate a more friendly Securities and Exchange Commission (SEC).
Analysts anticipate that the next SEC Chair will possibly end the ongoing litigation with Ripple and other companies in the crypto industry. The agency will also be more open to approving more spot ETFs, including XRP and XLM.
Ripple and Stellar have some similarities in that they were created to offer solutions in the payment industr, as the World Bank noted, as shown below. Also, Gaving Wood, Stellar’s founder, was also a co-founder of Ripple.
Stellar has more fundamental catalysts that could push its price higher. The most notable one is the Franklin OnChain US Government Money Fund, which is a tokenized fund with over $435 million in assets and operates in Stellar’s blockchain. Stellar also has a relationship with a company like Moneygram that enables users to send and receive payments at thousands of its locations.
Read more: Stellar Crypto Price Prediction: XLM Forms a Rare Bullish Pattern
