The price of Stellar (XLM) has experienced a similar meteoric rise to the XRP token in the last 24 hours. This rise was triggered by news that Ripple, the company behind XRP, had won its long-running case against the US Securities and Exchange Commission SEC.
The SEC’s case that XRP is a security was the focus of the court trial. To the delight of the crypto community, Judge Annalisa Torres of the US District Court for the Southern District of New York ruled in Ripple’s favor, declaring the XRP token not to be a security.
Stellar Looks To Enter The Top 20 Crypto Ranking
The altcoin market had been dominated by bearish pressure in recent weeks due partly to the SEC’s declaration of tokens tied to Solana, Polygon, and Cardano as securities. This declaration formed the foundation of the regulator’s case against prominent crypto exchanges Coinbase and Binance.
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That said, the market was jolted back to life yesterday following the announcement of Ripple’s court victory, with most tokens basking in green. Stellar also reacted swiftly to positive market sentiment, going on an almost 90% price rally within a few hours.
The token’s price has since steadied, with Stellar currently trading with a 52.4 % gain. With this, XLM’s price rise places it amongst the top daily gainers in the cryptocurrency market today.
As of this writing, XLM is valued at $0.147189, with a 3.9% price decrease in the past hour. The token has a 24-hour trading volume of over $1.26 billion, representing a 3,386% surge in the past day.
According to CoinGecko data, the Stellar token is closing in on a spot in the top 20 largest cryptocurrencies, with a market cap of nearly $4 billion.
Is $0.8 Within Reach For XLM?
A look at the broader market shows that XLM has been underwhelming in recent days. Although the token scored some significant gains last month, it appears to have also been affected by the dour market conditions in July.
Following the positive price movement of yesterday, investors are hoping to see the XLM price visit the $0.8 again. However, after hitting its all-time high of $0.875563 in 2018, the coin has only ever reached the $0.8 level once.
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On the weekly chart, the XLM token must overcome resistance at $0.2 and $ 0.4 price levels. So, it would take extraordinary bullish pressure for Stellar to reach $0.8 again.
XLMUSD trading at $0.146982 | Source: chart from TradingView
That said, the Relative Strength Index (RSI), an indicator that tracks the balance between the buying pressure and selling pressure of a token, suggests that the current bullish momentum might be waning.
The daily RSI has crossed above the 70-mark, which represents the overbought zone. This indicates that the buying pressure is at its peak, and a reversal might be on the horizon.
Featured image from Shutterstock, chart from TradingView