It looks like the “Bank Coins,” are finally joining the party, with Stellar Lumens [XLM] taking a page from the XRP book and realizing its own Golden Cross. Earlier this week, the third largest cryptocurrency in the market marked its bullish crossover, touted as the first inkling of a bull-run.
On June 1st, the 200-day Moving Average [MA] for XLM crossed below the 50-day Moving Average, which indicated that the current trend of the virtual currency’s price is higher than its historical index. Based on the price history of the Golden Cross, the asset, in question, will compound positive momentum to achieve significant highs in the period of the Golden Cross.
Spending the majority of 2019 engulfed in sideways and sluggish movement, despite the Bitcoin bulls anchoring the market to major highs, XLM’s rise manifested only in mid-May. Following a slew of announcements and adoption confirmation, for both the bank coins, XLM, during May 13-15 rose by a massive 44.17 percent.
The emphasis of the 44 percent increase cannot be overstated, because, till that point, Stellar Lumens had dropped over 20 percent in price since the year began. In fact, the cryptocurrency’s plummet to $0.072 in early February was its lowest point since prior to the December 2017 bull-run.
XLM saw the aforementioned MAs last intersect each other in June 2018, when the opposite of the Golden Cross i.e. the Death Cross manifested. When the 200-day MA overtook the 50-day MA, the cryptocurrency dropped to $0.175, by late-June, and close the year off at just over $0.111. The initial months of the year saw continued bearish action as XLM bottomed at $0.075.
Since the Death Cross was entered, the cryptocurrency shaved over 75 percent of its value, between the high and the low.
Interestingly, the bears and the bulls were fighting it out in mid-April 2018, as the two MAs nearly tracked each other. However, as the overarching bearish trend of the market sustained, the bulls gave in and in two months, the Death Cross was manifested leading to a massive decline.
However, it should be noted that despite the bank coin realizing its Golden Cross, XLM has fallen out of the top-10, at press time, thanks to a bullish TRON [TRX] which had amassed a 17 percent price pump in the past 24-hours. Coupled with the Bitcoin SV [BSV] rise, now on the 8th spot, owing to, as many pointed out a “fake pump.” XLM, in the past two weeks, dropped two spots and now finds itself on the outside looking in.
Stellar Lumens has, no doubt, been a prominent player in the cryptocurrency market, establishing a niche for itself and securing a massive partnership with the likes of IBM. From a price push perspective, however, the imminent bullish rally, as a consequence of this cross-over is a testament to the Bank Coins’ performance, or is Bitcoin’s rally anchoring a collective market golden run?
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Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.