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Stellar Lumens (XLM/USD) price jumped to the highest level since November as cryptocurrencies continued their comeback ahead of the upcoming Federal Reserve decision. The coin rose to a high of $0.09987, which was ~38% above the lowest level in December last year.
Cryptocurrencies are bouncing back
The performance of the XLM price is mostly because of the ongoing rally in the cryptocurrency industry. Bitcoin, the biggest crypto in the world, has seen its price jump from below $20,000 early this month to $28,000. Other altcoins like Litecoin and Ethereum have also done well.
A likely reason for the strong performance of cryptocurrencies is the ongoing events in the banking sector. On Monday, Credit Suisse’s shareholders saw their holdings tumble by more than 50% after UBS bought the company. Some analysts believe that UBS got Credit Suisse for free.
The banking crisis has also spread in the United States, where banks like First Republic Bank are on the brisk. A study published this week showed that as many as 190 banks could be at risk if the Federal Reserve continues hiking interest rates aggressively. As such, amidst all this, cryptocurrencies and gold have become better alternatives.
Stellar price also rose because of the recent news about its ecosystem. Last week, Pendulum, a Polkadot parachain winner, said that it was linking Stellar to the Polkadot and Kusama ecosystems. The goal for this bridge is to connect the Decentralized Finance (DeFi) ecosystems with the forex market.
The new bridge, which is known as Spacewalk, has already gone live on Kusama, where testing is going on. It will then be moved to the Polkadot ecosystem in the coming weeks.
Stellar, unlike other cryptocurrencies, has been in the sidelines for months. The most recent news in the ecosystem was the launch of Soroban, a platform that makes it possible for developers to build dApps in the ecosystem. The most important part of Soroban will be the ability to take DeFi to the masses, through Stellar’s relationship with MoneyGram.
Stellar price prediction
The XLM crypto price has been in a slow bullish trend in the past few days. It has managed to move from this month’s low of $0.074 to a high of $0.0998. As it rose, the coin moved above the key point at $0.097, the highest point on February 21.
Stellar jumped above the 25-day and 50-day moving averages while the MACD and the Relative Strength Index (RSI) have continued rising. It is also at the 50% Fibonacci retracement level.
Therefore, Stellar will likely continue rising as buyers target the next key resistance level at $0.1085, which is the 61.8% Fibonacci level.
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