Stellar (XLM) investors were in for a surprise over the weekend as the cryptocurrency staged a remarkable comeback, defying the prevailing bearish trend across the crypto market.
The token’s price surged by 7.3% in the past 24 hours and recorded a 2.3% increase over the past week, now resting at $0.122461 according to CoinGecko.
While cryptocurrency enthusiasts are rejoicing over the impressive price performance, the question that lingers on everyone’s mind is: why did Stellar’s price jump during the weekend? Two plausible explanations have emerged.
One likely catalyst for the sudden Stellar surge is the tantalizing tease from its developers regarding an important announcement scheduled for next week. This cryptic hint has stirred anticipation and speculation in the crypto community, with investors eagerly awaiting what could be a game-changing revelation for Stellar.
Something cool is dropping in 10 days.
Get ready to gear up for a change that’s got us all excited. Stay curious 😎 pic.twitter.com/CgNzfzwqmc
— Stellar (@StellarOrg) September 2, 2023
Another factor that might have contributed to the bullish sentiment around Stellar is the upcoming Meridian event set to be hosted by the blockchain platform later this month in Spain.
Meridian, known as Stellar’s flagship annual event, is expected to bring together a multitude of influential speakers from the blockchain and cryptocurrency space. Their speeches and insights have the potential to significantly influence market dynamics, possibly explaining the increased demand for XLM.
25 days until #Meridian2023! Get ready to dive into over 70 insightful sessions, connect with industry leaders, and unlock endless possibilities.
Grab your spot today! https://t.co/lRAGVzFLRl
— Stellar (@StellarOrg) September 1, 2023
Despite the recent surge, some technical indicators suggest potential challenges for Stellar. XLM has consistently closed daily sessions below the mid-range price of $0.1150, signaling increasing seller leverage. A weekly session closure below this level could confirm the sellers’ advancement, potentially pushing XLM toward the range low of approximately $0.1000.
However, this range low is not without its silver lining. It coincides with a daily bullish Order Book (OB) ranging from $0.0953 to $0.0986, creating a strong support zone for the cryptocurrency. Investors will be closely monitoring whether XLM can maintain its foothold in this zone or if further bearish pressure awaits.
XLM market cap currently at $3.4 billion in the daily chart: TradingView.com
In the past few days, funding rates in the crypto market have been predominantly negative, underscoring the prevailing bearish bias. This bearish sentiment is further supported by the declining Open Interest (OI) rates witnessed in August and early September.
The decrease in OI reflects reduced demand for XLM during this period, suggesting that investors remain cautious in the face of market uncertainties.
As the crypto community eagerly anticipates the forthcoming news from Stellar’s developers and the Meridian event, XLM’s price trajectory remains uncertain.
Traders and investors are advised to exercise caution and closely monitor the evolving market dynamics in the coming days, as these developments could play a pivotal role in determining Stellar’s future price movements.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from MEXC Blog