Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
The price of Stellar (XLM) cryptocurrency has surged over 600% in the past month, marking the biggest performance in the digital asset’s history. As a result, the price of XLM reached $0.6374, which, while not an all-time high for the Stellar token, is the highest mark for it since May 2021.
Against the backdrop of such impressive XLM price action, many enthusiastic investors and crypto market participants began to wonder whether this is the last stop for the token’s rally or if the growth prospects are not over yet.
Related
*Despite the fact that predicting anything for sure in the crypto market is a lost cause rather than a profitable one, there are a number of indicators and benchmarks that can help to understand approximately where the token price stands right here and now. One of such indicators can be called Bollinger Bands, developed by expert trader John Bollinger and characterized by two moving averages and the median between them.
So according to the Bollinger Bands, the upper mark of the range for the Stellar token is now at $0.6445, and the lower one at $0.2124. Such a gap indicates that the price of the token is overheated a bit, which is not surprising when XLM increased sixfold in not even the whole of November, but only in the last two weeks.
Related
Nevertheless, it is likely that there is still room for the token to grow when, after the price went beyond the upper band, it corrected and then began to move up again. Considering that XLM is currently quoted at $0.53, this opens up the potential for 22% growth.
In addition, it can be taken into account that XRP is growing again, and XLM is a kind of beta for the sixth largest cryptocurrency. If XRP continues its performance, then the Stellar token will be the first in line to follow it.