Stellar (XLM) faces an unusual price volatility test amid the ongoing market fluctuation in the broader cryptocurrency space. This is despite having registered 3.61% growth in the last 30 days as the asset continues its upward momentum. The volatility trend has triggered a drawdown in volume over the past 24 hours.
Sudden Stellar price swings spark investor caution
According to CoinMarketCap data, the XLM volatility is evident in different metrics. The coin rose from a low of $0.2735 in a massive spike to hit a high of $0.2804 within a short space on the crypto market.
Around $154,400,000 in Stellar were traded over the past 24 hours, despite the reversed gains.
XLM took a wild turn after attaining the peak and plunged back to its low of $0.2735, reversing all gains achieved. The volatility has persisted as XLM climbed to $0.2783 again before maintaining sideways movement.
The volatility comes just after the XRP rival surged by over 35% to flip the Ripple-backed token in on-chain activity. Market participants had expressed concerns that the development could trigger the witnessed volatility.
Interestingly, the surge appeared natural and technically convincing, fueling hope in some quarters of a further climb.
Some have speculated that the rise in Stellar might have been fueled by the asset’s growing utility. Additionally, XLM is known for fast, low-cost cross-border payment, just like its rival, XRP.
Is broader market volatility behind XLM roller coaster?
As of press time, XLM is changing hands at $0.2768, representing a 1.08% decline in the last 24 hours. The volatility might have caused investors to pull back, as trading volume has dropped by 8.39% to $154.44 million.
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XLM could stabilize and resume its upward quest, given the asset’s recent performance and penchant for shunning a bearish slowdown. In a quiet move last month, XLM managed to outpace its rival by staying in the green as XRP slipped into the red.
Some XLM holders have remained bullish, insisting that the current bull-bear showdown in the ecosystem is not peculiar to Stellar. The past few days have been marked by market fluctuation in the digital asset market.