Stellar Lumens price surges on United Nations and World Bank endorsements

Stellar Lumens (XLM) has been on an impressive upward trajectory recently, drawing attention for its rapid price surge.

With high-profile collaborations and endorsements from the United Nations and the World Bank, XLM is positioned as a key player in the future of global finance.

The surge in Stellar Lumens price: a 106% jump in a week

Stellar Lumens has been experiencing an extraordinary rally in recent weeks, with the price of XLM surging by 106% in just seven days and a massive 188% increase over the past two weeks.

At the time of writing, XLM was trading at $0.2932, marking a high point not seen for some time. This price movement has significantly outpaced Bitcoin’s performance over the same period, with the flagship cryptocurrency rising just 6.7% in the past week and 26% in the last fortnight.

This rapid growth has been largely driven by increasing optimism surrounding Stellar’s role in the evolving global financial system. Notably, high-profile collaborations have fueled XLM’s price momentum.

A key factor behind this surge is the recent partnership with MasterCard, a major global payments player, which has sparked a wave of investor interest.

Additionally, Stellar’s endorsement by the United Nations as part of its vision for a new global financial system has been a catalyst for the cryptocurrency’s explosive rise.

Endorsements from the World Bank and the United Nations

The backing of both the United Nations and the World Bank is a powerful endorsement for Stellar Lumens in the context of its growing role in the financial ecosystem.

The World Bank’s recognition of XLM as part of a transformative two-tier monetary system positions it as a critical asset in facilitating global financial inclusion. This two-tier system, as discussed by financial analysts, envisions XRP (Ripple) handling institutional liquidity for cross-border payments, while XLM focuses on enabling peer-to-peer remittances.

The World Bank has lauded XLM for its low-cost and efficient transaction model, particularly beneficial for users without access to traditional banking services.

The United Nations’ endorsement of Stellar and Ripple further supports the narrative of blockchain technology as a cornerstone of a tokenized economy.

Stellar’s focus on retail-level remittances and the ability to facilitate peer-to-peer transactions in emerging markets, particularly in South America, makes it an attractive solution for global financial inclusion.

The UN’s support signals a broader push toward a digital, decentralized financial system, with XLM playing a key role in its implementation.

Technical indicators point to a potential correction:

Despite the bullish outlook for Stellar Lumens, caution is advised for potential investors. While XLM has demonstrated impressive gains, technical indicators suggest the cryptocurrency may soon face a sharp correction.

The Relative Strength Index (RSI) has spiked to 87.47, indicating that the asset is overbought and may soon experience a price pullback.

Additionally, the Stochastic Oscillator is nearing 100, a level that often precedes a price decline.

The surge in price has also pushed XLM 142% above its 50-week and 200-week Exponential Moving Averages (EMAs), a clear sign that mean reversion could occur. This suggests that XLM may fall back toward these averages before continuing its upward trend.

Furthermore, many technical analysts anticipate a potential retest of the $0.1624 support level, which could trigger a temporary reversal before the price resumes its upward movement.

While the long-term outlook for XLM remains strong, investors should be cautious of the technical signals that suggest a short-term correction is on the horizon.

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