Stellar Lumens has registered seven straight days of gains in a row and a price increase of over 20% this week.
Aside from the positive price movements in the cryptocurrency market, the native token XLM has benefited since the announcement of its innovation Soroban.
Trading Activity Increases
Stellar Lumens (XLM) has moved to its highest trading level since Nov. 11, 2022, as positive fundamentals and technicals behind XLM power the coin toward $0.11.
Last week XLM reached the $0.10 level for the first time in a year. Since reaching the $0.10 level, XLM has gained just under an additional 10% in value.
One critical element for price gains is Volume. According to the Blockchain forensics platform, XLM has seen a significant increase in Volume this week.
Volume for XLM reached $220 million on March 31, marking the highest Volume reading for XLM since November last year.
To put this into perspective, the highest Volume for XLM in February was $125 million, meaning that the highest level of Volume for XLM last month has been surpassed by over 76%.
Another factor that could benefit more gains in XLM is negative sentiment. XLM has seen a significant spike in negative sentiment, according to social data from Santiment.
Also, this was the second-largest-ever spike in negative sentiment towards XLM. Since the large uptick in negativity happened on March 28, XLM has seen a price increase of close to 10%.
XLM is trading higher by over 22% from the week’s trading lows so far. As traders turn wholesale bearish towards the latest move higher in XLM, it could be taken as a contrarian signal.
XLM Price Prediction: Target $0.13
On March 29, XLM broke above a rising price channel, around $0.10 that the cryptocurrency has been contained within, since the start of the year.
A subsequent retest of the channel held firm on March 30, and XLM has since rallied toward the $0.11 area, marking a gain of close to 10%.
According to the overall size of the channel, XLM could rally towards the $0.13 area from current trading levels, which would be a price gain of just over 18% for XLM.
This price target also coincides nicely with the former key swing highs from August and October 2022, both located slightly above the $0.13 area.
However, if a false breakout above the mentioned price channel was to take place, then XLM could fall back toward the $0.09 support area.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.