Stellar’s price has risen 96.69% to $0.2444 over the past week. XRP’s recent market performance and this impressive rise show how related the two cryptocurrencies are.
XLM and XRP have similar origins. Both were co-founded by Jed McCaleb, and their often joint missions involved facilitating cross-border transactions.
Rumors that SEC Chairman Gary Gensler could step down helped XRP soar 51% to $1.10, giving Stellar investor confidence a major boost.
This momentum was driven by the market realizing that they shared utility and the nodes were connected. XLM rose in price by 25%.
Unsurprisingly, Stellar’s $7.3 billion market capitalization signals strong interest and growing bullish sentiment around the digital currency.
This, along with other strong technical indicators, indicates continued upside potential. Stellar is receiving attention from both retail and institutional investors.
The growth is massive. As long as the bullish trend continues, even greater upside potential is possible. XLM needs to overcome its previous all-time high of $0.9381.
The data indicates a significant increase in activity in the market. Liquidity is higher with increased trader participation as trading volume increases by 51.50% to $1.64 billion.
Investor positioning and market confidence are taking a positive turn. Open interest on outstanding derivatives contracts rose 20.97% to $133.40 million, indicating a strong trend in trading and engagement.
Cardano and Stellar discussions raise speculation about future collaboration
Cardano (ADA) founder Charles Hoskinson recently announced the possibility of a partnership with Stellar. Cardano was in talks with Jed McCaleb, co-founder of Stellar; “It’s not relevant,” he said of the matter.
Hoskinson said Stellar has been involved in a number of Cardano projects they are working on and communicates with the XLM team every day, and called them “good people.”
This is a hint at an upcoming collaboration or increased interaction between Cardano and Stellar, and Hoskinson assured that this is not a direct partnership.
The tone of the conversation was positive, as if the two communities could somehow collaborate and even work together on things in the blockchain space, both to benefit each other.
Stellar Key Levels to Watch
Stellar is currently holding at $0.250 after failing to clear the $0.270 resistance. Key support is $0.2220.
If this level holds, it will open the way to $0.400, and if it is broken, a fall to $0.230 will mean a deeper correction.
XLM is still above the middle Bollinger Band, but a consolidation pattern could indicate a reversal is coming soon.
The MACD shows the slowing of upward momentum as the bearish crossover begins, and the Awesome Oscillator shows the cooling of bullish strength as the green bars begin to decline.
This means that the trend may be corrective as buyers continue to dominate the trend.
XLM Funding Rates Show Shift From Bearish To Bullish Momentum
The history of XLM funding rates can show changes in trader sentiment over time.
But in late August and September, funding rates were largely negative, reflecting bearish sentiment, with shorts dominating the market.
By October, funding rates began to stabilize, with moments of bull run followed by a tail return to on-chain equilibrium.
But by November, funding rates remained consistently positive as the price of XLM rose. Thus, long positions have determined dominance, indicating that traders are more confident in XLM’s upside potential.
