Stellar's (XLM) 5% surge outpaces Ripple (XRP) as the market prepares for a significant shift.

Stellar's (XLM) 5% surge outpaces Ripple (XRP) as the market prepares for a significant shift.

In a noteworthy development, Stellar (XLM) has experienced a significant 5.48% increase in the last 24 hours, reaching a price of around $0.25 with a market capitalization of approximately $7.765 billion, marking an addition of $403 million since yesterday.

Several factors are contributing to this recent positive performance. The long-short ratio of XLM reached 1.11, a one-month high, indicating that more traders are betting on the price to rise. This growing bullish sentiment in the derivatives market appears to be a key driver behind the price increase.

Moreover, XLM's price surge has outpaced its close peer XRP, with the correlation between the two temporarily breaking. This suggests that investors may be rotating funds into XLM in anticipation of a wider altcoin market breakout phase.

Technically, XLM has rebounded steadily from a low near $0.222 on July 1 and is trading below its daily 50-day moving average (SMA 50) of $0.26. A strong break above this SMA 50 would position XLM to leave its current range-bound state (since late May) and potentially approach its 200-day SMA at $0.307, which investors are watching closely.

Stellar’s blockchain is known for being faster, cheaper, and more energy-efficient than many others, providing tools to enhance access to the global financial system. This long-term fundamental value continues to support investor confidence.

In the case of a dip, support for XLM is expected in the $0.20 to $0.216 range. At press time, XLM is up 5% in the last 24 hours to $0.25, while XRP is up 0.59% in the same period, highlighting XLM's recent performance outperforming its peer.

Notably, Mercado Bitcoin is bringing over $200 million in real-world assets on-chain to the XRP Ledger, further underscoring the platform's potential. However, it is important to remember that the cryptocurrency market remains volatile, and investors should consider their risk tolerance before making investment decisions.

[1] Data from CoinMarketCap [2] Data from TradingView [3] Data from Messari

Trading activity for Stellar (XLM) has seen an increase, with more traders betting on its price to rise due to a long-short ratio of 1.11, a one-month high that indicates a growing bullish sentiment in the derivatives market. [2]

Investors may be rotating funds into XLM in anticipation of a wider altcoin market breakout phase, as its price surge has outpaced its close peer XRP, temporarily breaking their correlation. [1]

Technically, XLM's rebound from a low near $0.222 on July 1 has been steady, but it's currently trading below its daily 50-day moving average (SMA 50) of $0.26. A break above this SMA 50 could position XLM to leave its range-bound state and potentially approach its 200-day SMA at $0.307. [2]

The long-term fundamental value of Stellar’s blockchain, known for being faster, cheaper, and more energy-efficient, continues to support investor confidence. However, it is crucial to remember that the cryptocurrency market remains volatile, and investors should consider their risk tolerance before making investment decisions. [3]

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