Among the digital currencies that moved and rose remarkably in the recent period, the digital currency “Stellar” XLM, which rose by 166% in five days.

Below we will discuss the possible reasons behind the rise of the digital currency “Stellar” XLM by 166% in less than a week.

1- Follow the Bitcoin movement:

Bitcoin, with one movement of it, moves the cryptocurrency market as a whole, either positively or negatively.

So we find many analysts and observers looking and looking at the behavior of Bitcoin and from it infer what is possible as the next movement of alternative digital currencies.

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When the bitcoin price crossed the $17,000 level, many altcoins started to move higher, relying on the bullish market trend.

Where the alternative digital currencies that led the historical rise that occurred at the end of 2017 and the beginning of 2018, moved, and these alternative digital currencies include Ripple, Stellar and other large alternative digital currencies.

In the sense that the recent Bitcoin movement contributed and was the reason for the movement of the digital currency Stellar, which responded to the rising wave like other alternative digital currencies.

2- High buying and reaching peak demand:

According to analysts Cryptowat.ch, which provides data on the cryptocurrency market, the daily Relative Strength Index (RSI) shows that the cryptocurrency XLM is at overbought levels.

despite of #excellent 37% correction below $0.23 high, #XLM It has rebounded more than 11% today and 30% since its recent low of $0.145. XLM dollarsThe daily RSI is overbought and is now rising 📈

Live Chart ➡️ pic.twitter.com/SIdIflN7io

– Cryptowatch (@cryptowat_ch) November 27, 2020

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He said Analysts at Cryptowat.ch:

Although the cryptocurrency “Stellar” is facing a 37% lower correction from the level it reached at $0.23.

However, the currency’s daily RSI is still “exaggerated” and is on the rise.

This indicates that the demand for the digital currency XLM has been high for a long time.

The frenzy around altcoins and the demand for altcoins with smaller order books than bitcoin is likely to drive up XLM.

The digital currency “Stellar” accompanied the Ripple currency, which also rose above the 0.5 level, which it has not risen above since 2018.

3- The impact of social media:

According to Santiment, a blockchain analysis firm, the impact of social media on XRP, XLM, XVG, and ADA has been high.

Santiment stated:

Ripple is one of the premium currencies that has soared by more than 160%, and Ripple has continued to maintain its first position in terms of media momentum on social media.

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Cryptocurrencies XLM, XVG and ADA have also received a significant increase in media momentum.

The combination of a sudden rise in social media popularity and a general rise in altcoin market trading volume will likely drive up the price of Stellar and other big cryptocurrencies.

The “Stellar” coin, which is currently ranked eleventh in terms of market capitalization, increased by 1.88% in the past 24 hours.

The total market capitalization of Stellar currency XLM is estimated at $4.27 billion, with a trading volume of $973 million in 24 hours.

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