In the last 24 hours Stellar has rallied more than 24%. It has gained about 80% in 7 days and about 115% in last month. The cryptocurrency was trading at $0.1744 up from $0.135 within the last 24 hours. The reason behind such a big price move can be the XRP judgement. Stellar is very close to Ripple(XRP) in terms of functionality and use.
Stellar’s Price Rally Comes From XRP Judgment
The reason behind the price rally seems to be a the XRP judgement which caused a massive(65%+) price rally in XRP. Since Stellar is more focused towards individual users, it seem to be in a better position than XRP over the status of “being a security“.
Stellar is very close to XRP in functions, features and usage. Both cryptocurrencies and their blockchains are used for cross-border and cross-currency money transfer. Both of them were created with the purpose of connecting financial systems throughout the world.
However, it is more focused towards individual usage. Stellar has a unique feature, an on-chain order book, which helps track past ownership of coins. XLM or Lumens is the native cryptocurrency of the platform and is also used to pay for transaction fees.
Bitso Joins Stellar Network
Latin America’s Bitso has joined the stellar network to be facilitate USDC payments to Argentina, Colombia and Mexico. The company said is a press statement that it had created a solution that would help cross-country payment transfers in partnership with the Stellar Development foundation. The solution will enable businesses around the world to transact in USDC to Argentina, Colombia and Mexico.
Bitso has already established direct local connections with the banking systems in the above countries that will help crypto to cash conversions easily.
About Bitso
Bitso is a global crypto exchange founded in Mexico in 2014. Till now it has completed $3.3 Billion in transactions between US and Mexico.
As per Coindesk, it had registered a 32% increase in international payments in second half of 2022. The company claims 6 million plus users on its website Bitso.com.
Price Analysis
Stellar has grown with a massive volume which shows that there is heavy buying in the market. This also negates the possibility of price manipulation.
- Volume data shows that there were massive buying on 13 and 19 July 2023.
- RSI is increasing and has taken support near the levels of 62 which is also a strong bullish signal.
- Bollinger Bands are wide apart which indicate high volatility. Also the price is close to the upper band. This may trigger a small selloff until volatility and RSI cool off.
It would be wise not to buy at current levels because both RSI and Bollinger bands show that the cryptocurrency is overbought.
On-Chain Data
5.6% New Addresses in Last 6 Months
Stellar on-chain data shows that there has been a massive increase in the number of addresses in 2023 from 7.1 million addresses on 20 Jan to 7.5 million addresses on 20 July. This contributes to 5.6% new addresses in the last 6 months.
Disclaimer: The above article has been written from a theoretical perspective and should not be considered as trading advice. Please consult your financial advisor before trading or investing.
