- Stellar Lumens (XLM) experienced a remarkable 50% surge in price following Ripple’s victory in the SEC v. Ripple lawsuit.
- Stellar’s growth can be partly attributed to its recognition as a potential facilitator for the blockchain component of the FedNow Payment System.
Stellar Lumens (XLM) has seen significant upward movement following Ripple’s triumph in a recent lawsuit against the U.S. Securities and Exchange Commission (SEC), sparking an incredible rally across several cryptocurrencies. This momentum has pushed XLM, Stellar’s native token, to a 14-month high, increasing its market capitalization to an impressive $3.99 billion.
The Ripple Effect: Stellar Lumens Follows Suit
The SEC v. Ripple lawsuit culminated with the court’s verdict that Ripple’s XRP token did not constitute a security, and its public sale did not contravene securities regulations. This legal victory significantly boosted the price of XRP, leading to a domino effect on various other digital currencies, with Stellar Lumens (XLM) showing a particularly notable rally.
As of July 13, Stellar was trading at $0.1468, showing a 51.91% increase in just 24 hours. The surge added approximately $1.3 billion to XLM’s market value in a single day. This price upswing spurred a wave of investor activity, culminating in high levels of market engagement.
XLM Market Position: Eye on the Prize
XLM now hovers between the support level of $0.1253 and a resistance level of $0.15168. However, the token has recently tested higher thresholds, even reaching as high as $0.18. These promising figures have captured the attention of traders, and many are now setting their sights on the $0.2 price level.
Stellar Lumens’ current trading position is indicative of positive market sentiment. Notably, it’s trading above the 200-day simple moving average, a bullish indicator as per technical analysts. Over the past 30 days, XLM has registered 16 green days, signaling a majority of positive price movements (53%).
Stellar’s Market Liquidity and the FedNow Connection
Another important aspect of Stellar Lumens’ current standing is its high liquidity, as reflected by its market capitalization. This liquidity, which indicates a substantial trading volume and market activity, can contribute to increased market efficiency and make it easier for investors to buy or sell the token.
Stellar’s recent surge can also be partly attributed to its potential role in the blockchain component of the FedNow Payment System. FedNow, an instant payments service developed by the Federal Reserve, seeks to merge traditional banking with decentralized finance (DeFi). If Stellar Lumens is chosen as the blockchain facilitator for this service, it could lead to further price gains, enhancing the adoption and utility of Stellar Lumens, and in turn, impacting its market performance positively.