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Stellar (XLM) price movement has replicated that of the broader cryptocurrency market. Despite its attempts at a bull run, the token has failed to register major gains such as those created by Bitcoin and Ethereum.
XLM’s volatility has been relatively low during the past day, with its prices ranging between $0.22 and $0.24. Despite the price movement, the bullish flag is still flying, with the altcoin showing signs of pushing higher, at least for the short term.
XLM gears for a bullish rally
At the time of writing, Stellar was trading at $0.23 after a 1% dip in 24 hours. The coin is still 12.9% below its monthly high, but it has gained 18.6% over the past week.
XLM has been following the price movements in the broader cryptocurrency market. However, it has failed to record a major upswing due to a lack of overwhelming buyer support. The current uptrend in XLM prices, and the broader cryptocurrency market, has been attributed to short-term traders.
Having bounced from the support at $0.19 recorded earlier in the week, XLM’s bulls have been quick to reverse any significant downtrend. With prices consolidation between $0.22 and $0.25, investors are likely to trigger a strong bullish rally, at least for the short term.
Increased buyer support could see XLM extend its positive price action. Market data shows that several bid orders have been placed at the $0.22 support; hence Stellar has been bouncing from this support over the past day.
On the upside, $0.24 is the major resistance. The bullish trend could break past these levels if buying activity persists. However, breaking beyond this level depends upon the broader market. The cryptocurrency market could continue to rally this month. However, a potential downside awaits in March as the US Federal Reserve announces a new monetary policy that will curb the rising inflation rate.
Bullish developments in the Stellar ecosystem
XLM’s price action could be attributed to a series of positive developments in the Stellar ecosystem. Last year, Stellar landed a major partnership with MoneyGram. Through this partnership, MoneyGram tapped into the Stellar blockchain to facilitate its users with a seamless way of converting USDC into cash and cash into USDC. This partnership made cryptocurrency easily available to MoneyGram users at low costs and fast speeds.
The other notable partnership was with Tribal Credit, a payments processing firm that allows merchants in Mexico to send local currency to US-based businesses. This money is automatically converted into USD, facilitating seamless business transactions among small and medium-sized enterprises.
The CEO of the Stellar Development Foundation (SDF), Denelle Dixon, recently announced the rate of growth that the Stellar blockchain had achieved. Dixon noted that the Stellar ecosystem had strong use cases that impacted the real world.
Dixon opined that blockchain is real, it’s here, and it’s solving real problems. It’s time we start talking about how it’s already unlocking new opportunities for migrant workers, refugees, the unbanked, and small and medium businesses all over the globe.”
Dixon noted that the Stellar ecosystem was committed to bringing digital financial systems into the hands of the unbanked and those that do not have the infrastructure to make cross-border payments. The executive referred to a recent development by Leaf Global Fintech of a UNICEF-backed digital wallet that allows people to save in multiple currencies.
To learn more about this token visit our Investing in Stellar guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.