After the announcement of an improvement of the Stellar protocol, the price of the cryptocurrency began a rapid rise that already adds gains of almost 100% in the last 7 days.
At the time of this writing, XLM is trading at $ 0.1688, casting great positivity in its market, and opening the way for higher profits.
Stellar’s rise primarily driven by new enhancements
Undoubtedly the main trigger for this great rise is the announcement made by Justin Rice, a senior executive at Stellar, where he exposes the improvements that the new protocol will bring.
The main modifications to the platform are the improvement of sponsored bookings and reclaimable balances. Both help make the process of creating new applications on the Stellar network easier.
Justin claims the improvements were put to the test on Stellar’s testnet. Now the modifications are online. The development team is very excited to see how users are already beginning to use the update, says Justin.
Stellar’s Big Rise Is Clearing The Way For Big Gains
When we look at the monthly chart of XLM vs USD, we notice how the strong bullish explosion we are seeing is signifying the resumption of the long-term trend.
For the past 3 years, XLM kept making a pretty deep pullback, as did much of the crypto market. All that season can be seen as a great descending channel.
Now Stellar has been holding during this year making increasingly higher lows, which is noticeable as a bullish succession, locked in an ascending channel.
On the monthly chart the next relevant target is the previous all-time high at $ 0.51, but considering that we are seeing the resumption of the long-term trend, that level may fall short when XLM looks to make a new ATH.
Medium-term trend
On the monthly chart we see fairly clean price action. After finding demand at $ 0.0725. XLM started what is being a boost in the medium term.
That momentum is not yet over, but it is quite widespread, so it is likely to be exhausted.
Currently the price is facing a relevant resistance at $ 0.1587. Crossing it will leave the ground free up to $ 0.2836.
Short term trend
Obviously with the big rise that Stellar is making, the short-term trend is totally bullish.
Currently, as seen in the weekly chart, the short-term momentum is very widespread, and that borderline of the ascending channel may function as dynamic resistance in the next hours / days.
The 8-day EMA and 18-day SMA moving averages are crossed upward following the trend. These averages may function as dynamic supports when the price tries to pull back a bit, as I hope will happen soon.
Either way, I don’t think it’s a good idea to try to bet on a likely pullback. Any drop will only be to stimulate demand. Always the best idea is to go with the trend.
All our publications are informative in nature, so in no case should they be followed as investment advice.
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