Stellar (XLM) Price Prediction: XLM/USD Bulls Aim to Reclaim $0.400 as SEC Chair Gensler Eyes Exit

The price of Stellar has boomed 96.69% in the past week to $0.2444. XRP's recent market performance and this impressive rally show how the two cryptocurrencies are connected.

Stellar price has seen a surge of 96.69% in the past week, reaching $0.2444. This impressive rally is closely tied to the recent market performance of XRP.

Both XLM and XRP share a common origin, having been co-founded by Jed McCaleb, with the shared missions of enabling cross-border transactions.

As rumors spread that SEC Chair Gary Gensler may be stepping down, XRP skyrocketed by 51% to $1.10, which in turn boosted the confidence of Stellar investors.

This momentum was further amplified by the realization that XLM and XRP nodes are connected, leading to a 25% surge in the price of XLM.

Given Stellar’s market cap of $7.3 billion and the growing bullish sentiment, there is significant interest and potential for further upside.

However, XLM must break above its previous all-time high of $0.9381 to continue the rally.

The data shows a substantial increase in market activity, with liquidity rising and trading volume up by 51.50% to $1.64 billion.

There is a positive shift in investor positioning and confidence, as evidenced by the 20.97% increase in outstanding derivative contracts open interest, reaching $133.40 million.

Cardano and Stellar Discussions Hint at Future Cooperation

In recent developments, Cardano (ADA) founder Charles Hoskinson has mentioned the possibility of a partnership with Stellar.

During a conversation about his interactions with Jed McCaleb, Hoskinson revealed that Cardano was in talks with Stellar, but the matter was unrelated.

“We had discussions with Jed about a number of things that they’re working on. I speak to the XLM team every day. They’re good people.”

Although Hoskinson clarified that the discussions were not directly about a partnership, his comments sparked speculation of future cooperation between Cardano and Stellar.

The tone of the conversation suggested a potential for collaboration between the two communities, with Hoskinson expressing optimism about working together on blockchain-related projects.

Stellar Key Levels to Watch

After failing to break through the resistance at $0.270, Stellar is currently holding around $0.250, with key support at $0.2220.

If this level holds, it will pave the way for a move towards $0.400. However, a drop below $0.230 would indicate a deeper correction.

Despite XLM still trading above the middle Bollinger Band, a consolidation pattern could be forming, indicating a possible reversal.

The MACD is slowing down with a bearish crossover launching, while the Awesome Oscillator shows a cooling off of bullish strength as the green bars start to diminish.

This implies that the trend may be corrective, as buyers still dominate the trend.

XLM Funding Rates Show a Shift from Bearish to Bullish Momentum

The history of XLM funding rates can provide insight into the changing trader sentiment over time.

In late August and September, funding rates were mostly negative, indicating bearish sentiment with shorts dominating the market.

However, by October, funding rates began to stabilize, with moments of bullish spike followed by a eventual return to on-chain equilibrium.

But as XLM price continued to rally in November, funding rates stayed on the plus side continuously.

This indicates that long positions are now dominating the trade, suggesting that traders are becoming more confident about the upward potential of XLM.