Stellar Lumens ($XLM) has experienced a significant surge in price, jumping 15% in the past day. This rise comes as the crypto market sees a minor rally, sparking renewed optimism among investors. Alongside $XLM, BTC20 ($BTC20) is also gaining momentum with its innovative stake-to-earn model, attracting attention from investors.
Currently, the price of $XLM is hovering around $0.168, marking a 15% increase from its low on Wednesday. The surge in price has propelled $XLM above the 20-day and 50-day Exponential Moving Averages (EMAs), indicating a renewed bullish momentum. If this rally continues, the resistance zone around $0.165 could be the next target for Stellar bulls, as it was rejected on July 22.
Adding to the bullish momentum is the fact that $XLM has broken above a minor trendline that had previously limited its price since July 20 on the 4H timeframe. A return to the top of this trendline could lead to an additional 15% gain from the current price.
Investor sentiment has been positively impacted by Stellar’s robust price action, with data from CoinGecko revealing that over 85% of users are feeling optimistic about $XLM. Furthermore, there have been over 2.32 million transactions recorded on Stellar’s ledger in the past 24 hours, indicating a strong correlation between user activity and the price rally.
Interestingly, there are no definitive catalysts behind the upward trend in $XLM’s price. However, its value is closely correlated with XRP ($XRP) due to their similar use cases and target markets. Both $XLM and $XRP aim to facilitate fast and low-cost cross-border payments, and they have competed for partnerships with major financial institutions.
As a result, $XLM is benefiting from positive developments related to XRP’s battle with the SEC, which concluded a few weeks ago. Additionally, technical factors such as breaking above the 20-day and 50-day EMAs are contributing to the bullish momentum for Stellar. The sustainability of these gains in the medium-to-long term may depend on Stellar’s ability to enhance its utility and maximize real-world adoption.
While established tokens like $XLM are capturing investors’ attention, newly-launched altcoins are also making waves. One such example is BTC20, an ERC-20 token that aims to bring Bitcoin’s legacy to life through a unique stake-to-earn model. By staking their $BTC20 tokens, holders can earn rewards over time, similar to how Bitcoin miners earn BTC rewards. This sustainable approach has resonated with eco-conscious investors, contributing to BTC20’s successful presale, which has raised $3.3 million in just two weeks.
Furthermore, BTC20’s nostalgic approach, setting the presale price at $1 to mirror Bitcoin’s early dynamics, has garnered interest from investors worldwide. Its compatibility with the Ethereum blockchain allows for seamless integration into Ethereum’s advanced infrastructure, opening up possibilities for integration into various decentralized applications (dApps) and areas like the metaverse and NFTs.
Overall, the surge in $XLM’s price and the rise of altcoins like BTC20 demonstrate the dynamic nature of the crypto market. Investors are closely monitoring these developments as they seek opportunities for growth and potential returns.