Yesterday brought disappointment to Stellar’s (XLM) community as a 4.5% plunge reduced the asset’s worth to around $0.148076. An overall 1.5% dip in the cryptocurrency market left no stone unturned. Stellar was unable to escape the negative hit, causing it to bear similarities to the fate of Ripple’s token XRP. However, keeping an optimistic view, the momentary setback for XLM is on par with the necessary market corrections observed following dramatic rallies.
With an overall 16% increase over the past week and a 63% surge in the past 30 days, the cryptocurrency struck gold with an over 100% rise since the beginning of the year. A minor correction of 4.5% doesn’t downplay the potential upside for Stellar. The cryptocurrency’s continuous expansion indicates that we may witness more gains post-correction.
Market indicators suggest a need for more time before the correction bottoms out. For instance, the 30-day running average is a significant distance from the 200-day average. Naturally, cryptocurrencies generally showcase strong rebounds once the short-term average falls below the long-term counterpoint.
Furthermore, XLM’s relative strength index dropped below 50 in the past 24-hour window, hinting at a forthcoming recovery once it hits or falls below 30. Such fluctuation in value is a common feature of trading and a necessary correction that points towards an eventual rise.
We cannot neglect that the Stellar platform profited from Ripple’s partial victory against the SEC, reaching new heights. Its use for cross-border payments played a significant role in the market performance, bolstering it against competitors. The latest quarterly review showed an 8% growth in the number of accounts on the Stellar network in Q2 2023.
Despite the occasional downs, Stellar’s transaction value of $419 million and a 21% YoY increase in operations point towards a growing blockchain platform.
New investments offer enriching diversity. An example is the ERC-20 meme coin, EVILPEPE, which launched its sale last week. The project has already raised over $600,000 and promises investors control of 90% of its supply, building a defence against potential big dumps or rug pulls. Their community-driven approach ensures a longer lifespan and potential for rallying high once listed on exchanges.
It’s important to remember that crypto investments are a high-risk game – market fluctuations are par for the course. As always, information is power, and you need to stay informed about the latest market trends. While Stellar’s recent performance may seem disheartening, a broader outlook suggests promising prospects.
Source: Cryptonews
