In the midst of a dynamic crypto environment, the XLM price of altcoin Stellar is experiencing significant developments. Accordingly, it made up for recent losses during a market-wide sell-off on August 17. There is a resurgence of interest in XLM. It follows the SEC’s latest move against Ripple, which threatens to appeal the initial decision of the SEC lawsuit. If conditions change positively, XLM will potentially double its value. Accordingly, it may enter a highly ascendant orbit.
Litigation impact on altcoin XRP and XLM
The SEC and Ripple lawsuit reached a tentative conclusion on July 13. Accordingly, there was a 100% rally for the altcoin XRP. On the other hand, the fact that the US Securities and Exchange Commission (SEC) will appeal the decision has created uncertainty over the future of XRP. This turmoil has already reflected on the charts, pushing altcoin XLM into the spotlight.
Following the verdict in the lawsuit between the SEC and Ripple on July 13, the price of XLM rose an impressive 107%. However, between July 13 and August 17, XLM fell 46%. It also eventually dropped to $0.120. The sale on August 17 has taken a hit by 17%. However, savvy investors took advantage of the subsequent recovery, gaining about 17%. So money flowed into this altcoin.
XLM’s 100% potential rally
Currently, altcoin XLM price is hovering around $0.121. Accordingly, it is 15% higher from its August 17 low of $0.105. An important threshold to watch is $0.127. Crossing this threshold signals a resurgence of the uptrend. On the other hand, it potentially increases Stellar 37% to reach the next important level of $0.166.
In a further bullish scenario, altcoin XLM price will revisit the $0.239 barrier. On the other hand, there is a significant amount of buy-side liquidity above this. This outlook is in line with the Relative Strength Index (RSI) and the Wave Trend indicator, both of which indicate a possible reversal. The RSI is rebounding from the oversold zone, while the Wave Trend indicator is predicting a bullish crossover. In an earlier example of such an event, the XLM price had risen by 55% in about three weeks. What’s more, if the SEC continues its appeal and is successful, it will provide additional impetus to XLM’s advantage.
Volume and support considerations
When we look at the data from Chain of Demand as cryptokoin.com, we see that as of August 19, altcoin XLM recorded a trading volume of $ 734,000 and XRP exceeded the volume of about $ 597,000. This spike in trading activity supports XLM’s expectations for a recovery. It also adds credibility to the bullish outlook for Stellar.
Conversely, altcoin XLM breaking the $0.104 support level will invalidate the bullish argument. It will potentially trigger a 15% drop towards the next stable support level at $0.0949.
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