Stellar (XLM) Extends Winning Streak, Will Its Rally Drive Other Altcoins Higher?

Expectations of another “altcoin season” after the spikes in April and May may be triggered by the moves of XLM.

Stellar (XLM) is growing robustly, with a long-lasting boost from the promise of Coinbase to research the project, and possibly add it in its trading portfolio. XLM held its positions, and kept adding to its price levels, adding another 1% overnight net to vault the $0.31 level at around 10:00 UTC.

https://twitter.com/StellarLumens/status/1019601288135204866

On a weekly basis, XLM has expanded its growth to more than 72%, becoming the strongest performing coin in the top 10 of CoinMarketCap. XLM is sometimes seen as the open-source alternative to Ripple’s XRP, but has not seen the debates whether the digital asset is a security. Because the Stellar organization is open-source, there is a lesser possibility that the XLM asset would be considered a security belonging to a company.

The spike in XLM has made some investors predict a renewed altcoin rally. Along with XLM, Cardano (ADA) has performed strongly, growing back to $0.18 on Thursday from recent lows near 10 cents, appreciating by 47% on a weekly basis. Traders are also seeing the possibility for an altcoin rally similar to the one that launched in July 2017.

XLM trading volumes have continued growing in the past days, though they have not recovered to peak levels. At this time, the low volumes help the price recover faster, but the rise looks shaky, and some traders are already realizing profits.

 

XLM rises for the first time while XRP has stagnated below 50 cents. However, a flippening may not happen immediately – XLM would need to recover near the $1 levels.

At the same time, the Stellar Decentralized Exchange has achieved volumes of around $1.36 million in equivalent crypto trades.

For now, most of the rise in XLM prices is fueled by trading on Binance. The concentration on a single exchange means speculation and bots have more leeway to affect prices, putting XLM back in view with spectacular gains.

At the highest levels since the beginning of May, XLM may go even higher, but the recovery may also break at any moment. XLM trading has a large portion against Bitcoin, and around 21% in the pair with Tether (USDT). In the past weeks, there are no dramatic news on the usage of the XLM digital asset, and most projects are in the preliminary or very early stages.

The appreciation of XLM has also boosted Mobius (MOBI), one of the first and most prominent ICOs on the platform. Stellar is still not seeing an inflow of ICOs similar to Ethereum, and so far, the other large project is Kin by the Kik app. MOBI is up more than 62% net in the past week, to $0.058.

Neither the author nor the publication takes any responsibility or liability for any investments, profits or losses you may incur as a result of this information. Cryptocurrency trading and investing is risky and market participants are advised to always conduct a thorough research.