As the overall crypto market experiences a slight gain in overall market capitalization, Stellar (XLM) stands out with a significant price increase over the past week. According to data from CoinMarketCapits XRP competitor is up 17.61%, outperforming all other top 100 cryptocurrencies over the past seven days.
XLM to Reach $1?
With XLM currently hovering around the $0.13 price zone, there are speculations about its next move. Interestingly, a crypto analyst by the name of EGRAG CRYPTO on X (formerly Twitter) predicts that XLM could rise to $1 if certain conditions are met.
According to the analyst post on September 8 this bullish forecast is formed based on a possible intersection between two technical indicators, namely the 200-day moving average (MA) and the 21-day exponential moving average (EMA).
#XLM On the way to $1:
When the Bullish Cross occurs on the weekly time frame with the 21 EMA (Exponential Moving Average) and the 200 MA (Moving Average), I expect a potential upside of around 500% 📈.
The chart below shows promising signs that the next… pic.twitter.com/33TrI2znLb
— EGRAG CRYPTO (@egragcrypto) September 8, 2023
To clarify, the MA indicator reflects the average price data over a specific period, for example 200 days. It is constantly updated and can be used to identify trading areas and recognize market trends.
On the other hand, the EMA performs a similar function, but with a focus on more recent price points. Due to its calculation method, the EMA responds more quickly to price changes than the MA.
Based on EGRAG CRYPTO’s prediction, if there is an upward crossover of the 21 EMA and 200 MA on XLM’s weekly chart, there is a possibility that the token will experience a 500% price increase in the coming months, surpassing the dollar sign to trade at $1.10. .
This prediction is mainly based on historical price data, as XLM witnessed a similar massive price increase when this crossover occurred between 2020 and 2021.
However, it is worth saying that all predictions are speculation without guarantees and should not be relied upon as investment advice.
Another partnership for Stellar?
In other news, the Stellar community seems to be expecting a huge positive update in the coming days. On September 2, Stellar Development Foundation shared with its crypto community that “something cool will drop in 10 days.”
Something nice is coming in 10 days.
Get ready to get ready for a change that will excite us all. Stay curious 😎 pic.twitter.com/CgNzfzwqmc
— Stellar (@StellarOrg) September 2, 2023
This announcement was well received, with the XLM token rising 10% over the next 24 hours. Interestingly enough, some enthusiasts are predicting that Stellar could announce a new partnership in the coming week.
The blockchain network has already worked with companies such as US money transfer company MoneyGram and Circle, the company behind the USDC stablecoin. In fact, Stellar announced a minority investment in MoneyGram earlier in August.
For the time being, it is still unknown what this new development could be. However, there is a possibility that this could have some effect on XLM’s price trajectory.
At the time of writing, XLM is trading at $0.132, having risen $0.132 over the past day. At the same time, the token’s daily trading volume has increased by 21.33% and is valued at $119.14 million.
XLM trading at $0.1308 on the hourly chart | Source: XLMUSDT chart on Tradingview.com
Featured image of Stellar, chart from Tradingview.