Bitcoin (btc) 
Stellar Lumens Sees Significant Price Increase Amid Ripple’s XRP Surge
Stellar Lumens Price Analysis
On December 17, Stellar Lumens (XLM) emerged as one of the top-performing cryptocurrencies, experiencing a notable surge in price. This upward movement mirrored the recent price increase of Ripple’s XRP, with Stellar’s price rising by 10% to an intraday high of $0.4713, a 32% increase from its lowest level this month.
Common Origin and Focus on Money Transfer
The synchronized movement between XLM and XRP can be attributed to their shared focus on money transfer and common origin. Stellar’s founder, Jed McCaleb, was also part of the founding team of Ripple Labs. As a result, Stellar often experiences a rally when Ripple is rising.
For instance, Stellar reached a yearly high of $0.1963 in July 2023 following Ripple Labs’ major lawsuit win against the Securities and Exchange Commission (SEC). Similarly, XLM’s price jumped by almost 500% in November after the election outcome indicated a potential shift in the SEC’s stance on Ripple Labs.
Strong Fundamentals and Bitcoin’s Influence
Stellar is also witnessing strong fundamentals, with its recent report showing a significant increase in the number of addresses in the network, exceeding 9 million. Additionally, the volume handled in its network soared to $4.9 billion.
The price movement of Stellar is also influenced by the performance of Bitcoin, which recently broke through the crucial resistance level of $107,000. As a result, altcoins, including Stellar, often experience an upward trend when Bitcoin is performing well.
Technical Analysis and Future Outlook
According to the daily chart, the XLM price bottomed at $0.3535 earlier this month, forming a hammer pattern, a popular reversal sign. Stellar has remained above the 50-day and 100-day moving averages and has formed a bullish engulfing chart pattern.
Based on these indicators, it is likely that Stellar will continue rising, with bulls targeting the intermediate resistance point at $0.50, approximately 12% above the current level. However, there is a risk that the coin may have formed a bearish flag pattern, leading to potential downside and a retest of the support at $0.3535.
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