Why did Stellar Lumens (XLM) jump nearly 10%... Will the rise continue to $0.24?

▲ XRP, Stellar (XLM)/AI Generated Image ©

Stellar Lumens (XLM) surged by nearly 10% in a single day, showing a significant upward trend that outperformed Bitcoin (BTC). The expansion of the payment and Real-World Asset (RWA) ecosystem supported the rise, amidst a shift of funds to altcoins with reduced regulatory uncertainty.

According to cryptocurrency market data aggregator CoinMarketCap on September 25 (local time), XLM recorded a 9.62% increase over the past 24 hours, reaching $0.221, significantly surpassing Bitcoin's 0.54% rise during the same period. XLM was recently classified as a 'Digital Commodity' by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), resolving major regulatory uncertainties. The Altcoin Season Index also rose by 1.92% over 24 hours, indicating a flow of funds from Bitcoin to high-beta altcoins.

The macro environment also aligned with the upward trend. XLM showed a high correlation of 83% with the S&P 500 over the past 24 hours, moving in tandem with risk asset preference. Maintaining the Altcoin Season Index above 50 was presented as a key indicator to gauge the continuation of the rotation trade.

Ecosystem expansion was also cited as a basis for the price increase. BVNK, owned by Mastercard, adopted the Stellar network for stablecoin payments, and Stellar's total value locked (TVL) in Real-World Assets exceeded $3.3 billion. While no single catalyst triggered this surge, the increasing adoption in payments and tokenization is seen as a sign of growing institutional utilization.

Technically, XLM confirmed its upward momentum by breaking through its 200-day Simple Moving Average (SMA) of $0.189 and the 38.2% Fibonacci Retracement level of $0.213. The short-term resistance is the recent high of $0.225, and if it surpasses this on a daily closing basis, $0.24 is presented as the next target zone. However, the 7-day Relative Strength Index (RSI) has entered the overbought region at 82, indicating a possibility of increased short-term volatility, and if the $0.20 support level breaks, there is a potential for a correction to $0.188.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*