Stellar Lumens’ native XLM token has been among the biggest winners in the cryptocurrency market in the past 24 hours, up around 49 percent in the US dollar-linked markets.
The XLM / USD exchange rate hit an intraday high of $ 0.313 after falling to $ 0.20 in the previous session. Traders poured into the Stellar tokens due to an overall rebound in crypto assets, with top coins like Bitcoin, Ethereum and XRP emerging from their respective session lows.
Stellar benefited most from its accessible upside fundamentals. The open source blockchain project recently emerged as an alternative to its top rival Ripple Labs. Ripple, a San Francisco-based payment company, got into a lawsuit with the US Securities and Exchange Commission over the alleged illegal sale of its domestic token, XRP.
$ XLM will soon accommodate all $ XRP bag holders
– IncomeSharks (@IncomeSharks) January 12, 2021
Meanwhile, traders rated Stellar as a partner in a high profile partnership with the Ukrainian government to digitize their local currency.
“We look forward to working with the ministry and other stakeholders to digitize the hryvnia, bring Stellar-based tools and services to the people and businesses of Ukraine, and introduce new partnership opportunities in Ukraine to companies in the Stellar ecosystem,” said Denelle Dixon , CEO and Executive Director of the Stellar Development Foundation, said in an accompanying press release.
The prospect of Stellar’s greater integration into a country’s digital financial ecosystem partially allowed XLM to absorb sell-off pressures on weekends and Monday. This could have contributed to the token having an attractive recovery rally on Tuesday.
XLM technical outlook
The XLM / USD exchange rate on a four-hour chart showed the pair in a short-term corrective downtrend after rallying 274 percent from the December 23rd low of $ 0.11.
It appeared to have formed a bullish flag, a small continuation pattern that occurs when an asset consolidates before moving back up. The price usually breaks out around the length of the previous rally, also known as the “flagpole”.
Stellar has the best recovery rally in the last 24 hours among top-cap coins. Source: XLMUSD on TradingView.com Stellar has the best recovery rally in the last 24 hours among top cap coins. Source: XLMUSD on TradingView.com
This puts the XLM / USD breakout target close to $ 0.535.