The Stellar Lumens (XLM) has been in a strong bullish trend in the past few weeks. The coin’s price has jumped to $0.3872, which is about 92% above the lowest level in July. This brings the total market cap of the ecosystem to more than $9 billion making it the 18th biggest coin in the world.
Stellar Lumens catalysts
There have been three primary catalysts for the XLM prices recently. In my view, the most important one was the recent rumour that the Stellar Foundation was in talks to acquire MoneyGram. The foundation is partnering with Advent International to make the purchase.
While the news has not been confirmed, investors are optimistic because it will legitimize the ecosystem. It will also give it the scale it needs to compete with Ripple. As you recall, Ripple had already partnered with MoneyGram to offer its On-Demand Liquidity (ODL) product. The relationship was put on hold because of the ongoing lawsuit.
Second, the Stellar price has risen because of the overall recovery of cryptocurrencies. With all altcoins like Cardano and Polkadot rises, investors have scooped Stellar hoping that its price will keep rising.
Finally, there is strong demand for the coin as evidenced by the volume. Data shows that the volume of Stellar Lumens traded every day has jumped to more than $1 billion in the past five straight days. This is notable since it signals that traders are still interested in the coin.
Stellar price prediction
Now, turning to the daily chart, we see that the coin has been in a strong bullish trend in the past few weeks. This happened after the coin found a strong support at $0.200. The coin has already moved above the 25-day and 50-day moving averages, which is a bullish thing.
The coin is also approaching the 50% Fibonacci retracement level. Therefore, in my view, I suspect that the XLM price will keep rising as demand for cryptocurrencies bounce back. If this happens, the next key level to watch will be the psychological level at $0.50, which is about 30% jump from the current level.
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