Stellar Lumens ($XLM) is positively on a roll right now, but look under the hood and there are certain signs a sharp correction may be incoming.
In the last seven days, Stellar’s $XLM surged 100% to hit $0.2496. Zoom out to a fortnight, and Stellar has blown up 158%.
These numbers compare favourably to Bitcoin’s ($BTC) over the same period. The world’s favourite cryptocurrency rose 6.7% on the day and 26% on the week to trade at $93,634.
Stellar Lumens’ sudden surge is thanks to a couple of recent high-profile collaborations with MasterCard and Franklin Templeton. The latter, a global investment giant, plans to bring $1.7 trillion in assets on-chain, which will greatly reduce the costs of transacting, according to the company.
In addition, the United Nations recently endorsed Stellar Lumens and $XRP progenitor Ripple as key components for a new financial system. The news has also helped push Ripple’s $XRP up 67% in one week and 112% in a fortnight.
UNITED NATIONS CONFIRMS RIPPLE AND STELLAR’S ROLE IN THE NEW FINANCIAL SYSTEM
This clip is from a webinar hosted by the United Nations Capital Development Fund (UNCDF).
Yes, the same United Nations with 193 member states, one of the most powerful platforms for… https://t.co/18DkAYgr7w pic.twitter.com/TFBsGDGtu7
— SMQKE (@SMQKEDQG) October 8, 2024
However, while Stellar’s verdant price action would typically be bullish, there are subtle signs that $XLM’s ascent is due for a rapid cool-down. That means now might actually be the worse time to buy in.
Stellar ($XLM): Primer and Price Analysis: Is a 50% Crash Incoming?
XLM launched way back in 2014, making it one of the oldest cryptocurrencies in circulation. It was developed to facilitate speedy and cheap cross-border payments.
Unlike crypto daddy Bitcoin ($BTC), Stellar does not utilize a Proof-of-Work consensus mechanism to verify transactions.
Instead, Stellar deploys its own consensus mechanism Stellar Consensus Protocol (SCP) which relies on a handful of “trustworthy” nodes that the community periodically elects.
For the last six months, the price of Stellar’s $XLM has generally not deviated far from a dime. However, during the beginning of November, a flood of capital entered the network. This has frequently pushed Stellar Lumens’ relative strength index (RSI) far above 70, meaning the token has been overbought for the majority of the rally.
$XLM’s RSI today is 59 and rising, which indicates buying momentum is picking pack up. For any new investors, this could be the worst time to buy Stellar as it’s likely going to be too pricy through much of the week.
The announcements should buoy the cryptocurrency in the short-to-mid term, so a crash is unlikely. But should the market turn bearish, investors could take lots of money out of the network, which may result in a price halving over a short period of time.
Hedge Against Potentially Stellar Volatility with Crash-Proof Meme Coin Staking Protocol: Crypto All-Stars
Stellar Lumens is receiving some heavy and illustrious backing right now, making it a clear rising star in the road to wider crypto adoption.
However, given its volatile rise may be bring some crashes in the future, prudent investors should spread their allocations across a diverse set of projects.
Over in the presale sector, even meme coin projects nowadays can attract eye-popping investment and returns.
One exciting new meme coin staking protocol called Crypto All-Stars has raised over $4.65 million. It hopes to change the negative perceptions around meme coins by enabling crypto fans to put their digital funny tokens to work and generate yield.
Already some of the the world’s most celebrated meme coins are integrated into the platform’s cross-chain MemeVault protocol with more to be added later, according to the team.
Users can stake Pepe Coin, Dogecoin, Shiba Inu, Floki Inu, Brett, MogCoin, Milady, TurboToken, Toshi The Cat, Coq Inu, and BonkCoin in the MemeVault to earn passive income.
The current reward rate for staking these coins is an impressive 386% in the form of $STARS.
Following the purchase, investors can begin staking for rewards and claim the tokens once the presale ends.
Head to the website to buy $STARS with ETH, USDT, BNB, or even by card.
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The post Stellar Faces 50% Crash? $XLM Exhibits Heavily Overbought Price Patterns Following XRP-Like Hike appeared first on Cryptonews.
#IndustryTalk #CryptoAll-Stars #Stellar #xlm [Source: CryptoNews]