Stellar Price Jump Points to 63% Growth Potential
Date: 2025-01-02 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
The price of Stellar (XLM) has increased by 22% to $0.3822, pushing the project’s market cap to $11 billion. The rise is due to both technical factors and recent partnership news.
This week, Stellar announced a partnership with Fonbnk, a platform that provides seamless access to digital banking services in Africa. Using Stellar’s technology, anyone with a SIM card can access these services, highlighting the practical value of the network.
Stellar’s price recovery is also partly due to its close relationship with Ripple (XRP), whose price is showing a bullish trend thanks to the formation of a rising wedge pattern. It is believed that both cryptocurrencies may strengthen their positions after the inauguration of Donald Trump as the US President.
The market is also growing hopes for a change in regulatory policy. Ripple expects a more favorable period for the crypto industry after Gary Gensler's departure. One of the key events could be the end of the SEC's appeal against the court's decision that XRP is not a security. A positive outcome in the case would also increase the chances of approval of the spot XRP-ETF, which has already been applied for by WisdomTree, which manages assets worth more than $100 billion.
In addition, the Stellar blockchain continues to show an increase in activity. According to data from the Dune platform, the network processed more than 1.16 million smart contract calls over the past month, which is a significant increase compared to zero figures a month earlier.
From a technical point of view, Stellar looks promising. On the daily chart, you can see that the XLM price rebounded after the formation of two doji-type candles - an indicator of a potential trend reversal. Moreover, a "descending wedge" figure has formed on the chart, which traditionally foretells growth when resistance levels are broken.
A breakout of resistance above the 50-day moving average and the 50% Fibonacci level indicates the possibility of further growth. If the current dynamics are maintained, the Stellar price may reach last year's maximum of $0.64, which is about 63% of the current level.
