Stellar (XLM) has been caught within the throes of an incredibly intense uptrend throughout the past few days, adding over $600 million to its market capitalization.
A large portion of these gains has come above over the span of the past 24-hours, with the token’s price rallying despite the aggregated crypto market showing some signs of weakness due to Bitcoin’s recent rejection at $9,500.
XLM is starting to show signs of forming a mid-term top, however, as its social volume is beginning to peak.
This tends to be a “telltale sign” of what one research platform describes as a “looming local top.”
Stellar rallies 15% as crypto market’s momentum slows
At the time of writing, Stellar (XLM) is trading up just under 15 percent at its current price of $0.091.
The cryptocurrency has been caught within a firm uptrend throughout the past few days, with its latest leg higher kicking off earlier this past Monday.
At the time, XLM was trading around $0.065, which is where it had been consolidating around during the prior week.
From here, buyers stepped up and sent it surging to highs of $0.096 before it lost its momentum and declined to lows of $0.085. Since then, it has recovered slightly and is now making a bid at recapturing its local highs.
This uptrend has been driven by strong volume and a blossoming sentiment amongst its investor base.
From a fundamental perspective, one factor that suggests that this rally has been premised more on hype than it has been on fundamental strength is the fact that on-chain development activity has been plummeting.
Data from analytics platform Santiment reveals this, showing that although development activity usually rises in tandem with Stellar’s price, this latest rally seems to be an anomaly.
This on-chain indicator suggests XLM could be forming a local top
While speaking about the Stellar’s current outlook in a tweet, Santiment also explained that the digital asset’s social volume is beginning to flash signs of it forming an overt local top.
The chart they offer indicates that the hype backing this rally may be starting to fade, which could mean that its price will begin retracing from here.
“XLM is showing a telltale sign of a looming local top. Social volume has exploded to an 8-month high. Typically, when crowds hype up an asset to a major deviation from avg. on a rising price, short/mid-term profit taking opportunities present themselves.”
Unless the altcoin market catches a second wave of buying pressure that helps send it surging higher, it does appear to be a growing possibility that Stellar (XLM) will not be able to extend its momentum for much longer.
The post Stellar (XLM) may be forming a local top as social volume hits 8-month high appeared first on CryptoSlate.
By: Cole Petersen
Title: Stellar (XLM) may be forming a local top as social volume hits 8-month high
Sourced From: cryptoslate.com/stellar-xlm-may-be-forming-a-local-top-as-social-volume-hits-8-month-high/
Published Date: Fri, 10 Jul 2020 05:30:19 +0000