Stellar Lumens ($XLM) has made a significant leap over the past day, posting a price increase of 15%.
This considerable increase comes amid a minor rally in the crypto market as investors begin to become optimistic once more.
At the same time, BTC20 ($BTC20), with its pioneering stake-to-earn model, is also attracting investor attention and gaining momentum.
$XLM Surges as Bulls Eye Further Upside
At the time of writing, the $XLM price is hovering around $0.168 – up 15% from Wednesday’s low.
Since hitting this low, $XLM has surged above the 20-day and 50-day Exponential Moving Averages (EMAs), indicating renewed bullish momentum.
If this rally continues, a likely target for Stellar bulls would be the resistance zone around $0.165, which price rejected on July 22.
Further fuelling the bullish momentum is that $XLM has broken above a minor trendline which had capped price since July 20 on the 4H timeframe.
Should $XLM return to the top of this trendline, it would represent a further 15% gain from today’s price.
Stellar’s robust price action has affected investor sentiment, with CoinGecko data revealing that more than 85% of users are “feeling good” about $XLM.
Additionally, over 2.32 million transactions were recorded on Stellar’s ledger in the past 24 hours – a sign that user activity is driving the price rally.
$XLM Rides $XRP’s Momentum to Continue Price Boost
Interestingly, there aren’t any definitive catalysts for the upward trend in $XLM’s price.
The token’s value is closely correlated with the value of XRP ($XRP) thanks to their similar use cases and target markets.
Both $XLM and $XRP aim to facilitate fast, low-cost cross-border payments and have competed for partnerships with huge financial institutions.
As such, $XLM is benefiting from positive developments related to $XRP’s battle with the SEC, which concluded a few weeks back.
However, technical factors like breaking above the 20-day and 50-day EMAs also seem to be fuelling the bullish momentum for Stellar.
Ultimately, sustaining these gains over the medium-to-long term may depend on Stellar advancing its utility and maximizing its moment in the spotlight to increase real-world adoption.
Thus, time will tell whether the current rally can continue or whether it’s just temporary.
Which New Altcoins Are Also Rising?
While established tokens like $XLM are catching investors’ attention, newly-launched altcoins are also making moves.
One example is BTC20, whose innovative stake-to-earn model has quickly generated hype around its ongoing presale.
BTC20 is an Alternative to Bitcoin on Ethereum That’s Raised $3.3m in Two Weeks
BTC20 ($BTC20) is a brand-new ERC-20 token that aims to bring Bitcoin’s legacy to life in a unique way.
Using the project’s ecosystem, holders can stake their $BTC20 tokens to earn rewards over time, similar to how Bitcoin miners earn $BTC rewards.
However, as highlighted in the project’s whitepaper, BTC20 uses a Proof-of-Stake (PoS) consensus, avoiding the high energy requirements of Bitcoin mining.
As such, this sustainable approach has struck a chord with eco-conscious investors, helping fuel BTC20’s presale success.
Moreover, BTC20 mirrors Bitcoin’s early dynamics by setting the presale price at just $1 – linking back to when $BTC had that value in 2011.
This nostalgia-driven approach has attracted interest from investors worldwide, leading to a massive influx of new members to BTC20’s Telegram channel.
Adding to the excitement is that $BTC20 is hosted on the Ethereum blockchain, which means it benefits from seamless integration into Ethereum’s advanced infrastructure.
This compatibility with Ethereum paves the way for $BTC20’s potential integration into thousands of decentralized applications (dApps), spanning exciting areas like the metaverse and NFTs.
All of these factors have contributed to BTC20’s early presale fundraising, which has reached $3.3 million in just two weeks.
Overall, BTC20’s tribute to Bitcoin, coupled with its pioneering staking design, creates a compelling value proposition – positioning it as an altcoin worth watching in the coming weeks.
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