Stellar’s price jumped nearly 14% to touch $0.17 on the back of sustained buy-side pressure.
Stellar (XLM) has pumped hard over the past 24 hours as the price of the world’s 13th-largest cryptocurrency rose to highs of $0.17. The cryptocurrency’s value against the US dollar has increased by about 14% on the day, with investors likely to eye gains towards $0.20.
Cardano (ADA), Tezos (XTZ) and VeChain (VET) have made significant upsides in the past 24 hours, gaining by 3—5%. However, XLM is printing double-digit gains to trend as the top performer among the 20 largest cryptocurrencies by market cap.
Positive news for Stellar
XLM’s price is surging on the back of yet another positive development for the Stellar network. On Monday, Ukraine’s Ministry of Digital Transformation announced it would be using Stellar to launch a national digital currency.
Alongside the Central Bank Digital Currency (CBDC), the country is also looking to work with Stellar Development Foundation to develop an infrastructure for stablecoin implementation and regulation.
XLM price outlook
The XLM/USD pair traded as high as $0.17 on several major cryptocurrency exchanges, with bulls braving sustained bear impulses to stay above $0.16.
Although several altcoins are struggling as Bitcoin tries to consolidate above $30,000, XLM charts suggest a bullish outlook in the short term.
The news from Ukraine is partly adding to the fundamental strength of the coin and could reinforce a potential uptrend if altcoins begin to run.
On the technical front, the breakout to $0.17 saw XLM/USD stem a downtrend that had included a dip to lows of $0.109 after SEC filed a lawsuit against Ripple (XRP).
The 4-hour chart shows a double bottom pattern, with the resultant reversal and confirmation likely to take XLM higher.
XLM/USD 4-hour chart. Source: TradingView
On the 4-hour chart, the Relative Strength Index (RSI) has turned positive and is increasing. Meanwhile, the MACD is strengthening after recently printing a bullish crossover. This outlook suggests that there is more room for growth for the bulls.
On the downside, XLM/USD will drop to the initial support level at the 100-SMA ($0.147) if bulls fail to hold gains above $0.155. If a potential downward trend takes shape in later sessions, the next support zone is around $0.124.