After ETH token surge in somewhat tandem with Bitcoin over the recent weeks, Stellar Lumens saw a strong breakout on July 16th which brought the asset up by 10 percent. As per the latest Stellar Lumens news, we take a closer look at the data for both cryptocurrencies.
The data shows that the asset is not yet decisively entering the bulls trend that altcoins such as Cardano and Chainlink have found themselves in. According to Peter Brandt, the commodities trader, extremely popular in the crypto community, XLM’s outlook could soon change due to a positive technical setup. Before July 16 that brought Stellar Lumens 10 percent higher, Peter Brandt shared a chart where he asked “Will XLM Stellar Lumens Be the next alt-coin to pump”?
The comments came shortly after he suggested that the altcoins could undergo a bullish price action which allows them to gain against Bitcoin. Brandt’s chart shows that XLM broke out of the inverse head and shoulders pattern that is often seen at the bottom of the bear trend to mark the reversal. The chart indicates that the cryptocurrency broke above a descending channel which was confining the price action since 2018 and above the crucial horizontal line of $0.089. The latter was held as resistance since the start of 2019.
Just before Brandt published the chart after ETH token surge, Stellar Lumens underwent the 10% rally which allowed it to retake $010. While technicals could have played a huge role, the bullish price action can be attributed to the news that the mobile phone giant Samsung provided support for Stellar in its Galaxy smartphones. A digital asset wallet for some of the devices in the company will allow for secure holding of cryptocurrency. This could not be Samsung, the corporation using Stellar Technology and the announcement sparked huge spikes in social volume as the blockchain analytics firm Santimetn showed.
XLM could be primed for a higher rally as some analysts believe it’s time for Bitcoin to skyrocket after the short-term altcoin season and the market experiencing in recent weeks. One popular trader shared the chart below the Bitcoin dominance metrics as the percentage of the cryptocurrency market made up of BTC. He believes that this metric is now in a corrective downtrend which will revert eventually to the upside and will surpass the altcoins in 2020.
The trader also believes that this will be triggered by the sell-off in the crypto market where Bitcoin will outperform the altcoins because of its relative liquidity, narratives, and stability.
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