In the aftermath of a significant crypto market sell-off last week, which temporarily drove the total market capitalization to $1.1 trillion, this week began with a promising rebound for several altcoins.
Yet, the elation was short-lived, as Stellar’s fortunes quickly reversed, once again veering into the red zone.
At the time of publication, XRP was trading at $0.124, down more than 6.3% over the past 24 hours.
The drop deepened the weekly and monthly losses of Stellar’s token to 9.5% and 24.6%, respectively.
Over this 30-day period, more than $1 billion was wiped off XLM’s market cap.
Why was XLM rising?
Following the latest sector-wide downturn last week, several altcoins, including XLM, showed encouraging signs of recovery, surging nearly 7% at one point during this 24-hour rollercoaster ride.
The move came amid positive changes in XLM’s social volume, blockchain intelligence platform Santiment noted on August 21.
Additionally, Santiment said there was a good chance of this trend continuing over the week, citing market value to realized value metrics.
“With market value to realized value metrics continuing to show traders are down big, don’t be surprised if the trend continues this week.”– Santiment wrote.
However, the rebound turned out to be temporary, with most of the major altcoins losing their gains in a matter of hours.
Crypto analyst says 405% increase remains in the cards for XLM
Notably, the strategist said Stellar’s prices are showing “signs of major strength.” He said the cryptocurrency rose around 54% since breaking out of the recent resisting trend (see below chart), and as a result, “we can watch for another continuation to commence!”
To be more specific, Javon thinks $0.681 remains a key target for XLM, which, if materialized, would imply a price increase of a whopping 405%.
Nevertheless, the likelihood of this outcome materializing seems uncertain, especially in light of the persistent pressure confronting the broader cryptocurrency market.
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