The price of Stellar (XLM) has experienced a meteoric rise similar to that of the XRP token over the past 24 hours. The rally was sparked by news that Ripple, the company behind XRP, won a long-running lawsuit against the U.S. Securities and Exchange Commission, the SEC.
The U.S. Securities and Exchange Commission’s case over whether XRP is a security is the focus of a court trial. To the delight of the crypto community, U.S. District Court Judge Annalisa Torres of the Southern District of New York ruled in favor of Ripple, declaring that the XRP token is not a security.
Stellar on track to enter top 20 cryptocurrencies
The altcoin market has been dominated by bearish pressure in recent weeks, in part due to the SEC declaring tokens related to Solana, Polygon, and Cardano to be securities. This statement formed the basis for a lawsuit filed by the regulator against prominent cryptocurrency exchanges Coinbase and Binance.
Nonetheless, the market came back to life yesterday with most coins in the green after Ripple announced victory in the case. Stellar also reacted quickly to the positive market sentiment, with the price increasing by almost 90% within a few hours.
The coin’s price has since stabilized, with Stellar currently trading up 52.4%. With this, XLM’s price increase has made it one of the biggest daily gainers in the cryptocurrency market today.
At the time of writing, XLM is valued at $0.147189, with the price down 3.9% in the past hour. The coin’s 24-hour trading volume topped $1.26 billion, a 3,386% surge from the past day.
The Stellar token is closing in on a spot among the top 20 largest cryptocurrencies, with a market capitalization approaching $4 billion, according to CoinGecko.
Can the price of XLM reach $0.8?
Looking at the broader market, XLM has been underwhelming in recent days. While the coin saw some notable gains last month, it also appeared to be affected by subdued market conditions in July.
Following yesterday’s positive price action, investors are hoping to see XLM price hit $0.8 again. However, after hitting an all-time high of $0.875563 in 2018, the coin has only reached the $0.8 level once.
Related Reading: XRP price drops after huge 80% jump, buy the dip?
On the weekly chart, the XLM token has to overcome resistance at the $0.2 and $0.4 price levels. Therefore, Stellar will need to endure significant bullish pressure to reach $0.8 again.
That said, the Relative Strength Index (RSI), an indicator that tracks the balance between buying and selling pressure on a coin, suggests that the current bullish momentum may be waning.
The daily RSI has crossed the 70 mark, indicating overbought territory. This suggests that buying pressure has peaked and a reversal may be imminent.