- XLM price has taken the lead in recovering losses after the recent market-wide sell-off on August 17.
- Investors seem to be more interested in Stellar’s XLM token after SEC filed a motion that could contest the initial verdict of the SEC vs. Ripple lawsuit.
- If things fall into place, a highly bullish case could see XLM double in value.
The SEC vs. Ripple lawsuit reached a temporary conclusion on July 13, with a partial win for Ripple. As a result, XRP price rallied 100%. But now that the US Securities and Commission Exchange (SEC) is back and looking to file an interlocutory motion, XRP token could be in trouble. The same is already being reflected in the chart, which has propelled XLM to the front.
Read more: SEC vs Ripple, the legal battle intensifies as XRP holders expect new changes from SEC appeal
XLM price takes XRP’s spotlight
XLM price rallied 107% on July 13 after the SEC vs. Ripple lawsuit’s decision was announced. But since then, XLM price has crashed 46% between July 13 and August 17 and currently trades at $0.120. Although the August 17 sell-off knocked the token down by 17%, the recovery rally has yielded nearly 17% gains for bottom buyers.
XRP price suffered a more fatal blow than XLM on August 17 as it lost 28% of its value. But the remittance token has recovered nearly 18% as it trades at around $0.506.
A comparison of the two shows XLM price is already at pre-crash levels while XRP price is struggling.
XLM vs. XRP price performance
Also read: Can Shytoshi Kusama’s plan to revive Shibarium undo Shiba Inu price losses?
Stellar’s XLM token could rally another 100% if BTC allows
Stellar’s XLM price currently hovers around $0.121 after recovering 15% from the August 17 bottom at $0.105. If XLM price manages to recover above $0.127, it will signal a comeback from bulls and potentially propel Stellar by 37% to tag the next key level at $0.166.
In a highly bullish case, XLM price could retest the $0.239 barrier, resting above which is buy-side liquidity. A sweep of this level seems likely especially considering the Relative Strength Index (RSI) and Wave Trend indicator, both of which are hinting at a potential reversal.
The RSI indicator is bouncing from the oversold zone, while the Wave Trend indicator is contemplating a bullish crossover. The last time this happened, XLM price rallied 55% in roughly three weeks.
In addition to the bullish technicals, if SEC does proceed with the appeal and finds success, it could give XLM the upper hand.
XLM/USDT 1-day chart
According to data analytics platform Chain of Demand, the volume for XLM as of August 19 hit $734,000, while XRP’s hovers around $597,000. This sudden uptick further explains why XLM has a better chance of recovering from the slumps and also adds credence to the bullish thesis for Stellar.
XLM vs. XRP volume chart
On the other hand, if XLM price breaches the $0.104 support level, it will create a lower low and invalidate the bullish thesis. Such a development could attract Stellar holders to sell, further trigger a 15% crash to the next stable support floor at $0.0949.
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