Amid Downturn, Stellar Lumens Is Outperforming the Market
Stellar’s XLM currency rose to one-week highs on Monday, with the technical charts indicating that the end of the downtrend may be near.
The XLM price surged 8.8% on Monday to $0.240, the highest since Aug. 6. By comparison, the broader cryptocurrency market was up less than 2% for the day.
Astonishingly, the Stellar price has traded flat compared with seven days ago – a period of exceptional volatility for altcoins. Over the same stretch, Ethereum has declined 21%, XRP 28% and IOTA 39%.
XLM’s daily trade volumes nearly doubled on Monday to reach $83 million, according to CoinMarketCap.
A look at the technical charts reveals that the Stellar price has concluded a double-bottom formation, which is usually a strong indicator of a bullish reversal. The relative strength index (RSI) has surged past 70, placing XLM in a short-term overbought state.
At current values, Stellar is capitalized at $4.5 billion, which is just shy of EOS’ $4.7 billion total. XLM remains the sixth largest by market cap after moving up several spots this year.
Facebook-Stellar Collaboration Rumors
Stellar was in the headlines Friday after Business Insider reported that Facebook was considering partnering with the company to build its own variant of the blockchain network. However, those rumors were immediately quelled after a Facebook spokesperson reportedly told Cheddar that the company is “not engaged in any discussions with Stellar, and we are not considering building on their technology.”
The initial report from Business Insider came after Facebook vice president David Marcus stepped down from the board of Coinbase over conflict of interest. This only fueled speculation that the social media juggernaut was ramping up efforts to deliver its own blockchain-based currency.
Against this backdrop, Stellar would appear to be a natural fit given its strong inroads into Corporate America. IBM has already announced multiple initiatives with the Stellar non-profit designed to streamline cross-border payments and create carbon credits for environmentally-conscious businesses.
Rumors connecting Facebook to new blockchain initiatives have swirled for much of the year. As Hacked previously reported, it has even been suggested that the social media company is considering acquiring Coinbase in its effort to expand into the digital currency space. Until now, Facebook has given no indication it is planning to enter the market for virtual exchanges.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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