XLM Soars 26% in Bullish Week, Investors Celebrate Stellar Gains
• Stellar Lumens [XLM] experienced a 26% upside in the last seven days.
• On-chain data revealed a fall in weighted sentiment and social dominance, while the market cap and volume surged.
• The surge was largely due to Stellar’s partnership with Coinme, which facilitates a crypto on-off ramp.
XLM Pulls off Strong Performance
Stellar Lumens [XLM] pulled off an impressive 26% upside in the last seven days, as demand for the cryptocurrency increased once again. XLM traded at $0.11 at press time, marking a 49% increase from its lowest point in March. This pushed XLM back above its 200-day moving average and into overbought territory, signaling that sell pressure may soon arise.
Metrics Reveal Cautious Trading
On-chain data showed that investor confidence had faded, as indicated by a fall in weighted sentiment and social dominance metrics. However, this did not prevent XLM from experiencing significant demand over the past week, with its weekly volume reaching its highest level since March. This suggests that if sell pressure is not strong enough for a bearish pivot, XLM could potentially extend its rally further.
Stellar’s Partnership with Coinme
The surge of demand for XLM was largely attributed to Stellar’s partnership with Coinme. The collaboration will facilitate an easy flow of liquidity through stablecoins by creating an on-off ramp to enable crypto transactions more easily and conveniently. Therefore, it is likely that Stellar network will be able to leverage robust growth in the future due to this partnership.
Network Development Activity Slowing Down
Despite all these positive developments surrounding Stellar Lumens [XLM], it should also be noted that network development activity has been slowing down recently according to metrics such as Network Value/Tx ratio (NVT). This may not necessarily inspire confidence among investors looking to benefit from the bullish market conditions surrounding XLM currently.
In conclusion, despite signs of potential retracement due to being overbought and decreasing network development activity levels, the overall outlook remains positive for Stellar Lumens [XLM]. The cryptocurrency has seen significant demand due to its partnership with Coinme which is likely to spur further growth of the project in the long term; however investors should still exercise caution when trading with XLM due to potential sell pressure arising soon..