Stellar’s CEO attended the hearing on December 8th to trigger a 10% increase in XLM price, but it didn’t take long

Denelle Dixon, CEO of the Stellar Development Foundation, prepares to address a full committee hearing. Immediately after the news broke, the price of XLM – Stellar’s native cryptocurrency – rose 10% within 24 hours. Unfortunately, this upward trend did not last long.

XLM / USD 4-hour chart | Source: Tradingview

The Stellar CEO “is extremely honored to address next week at the full committee hearing on Digital Assets and the Future of Finance”. MP Maxine Waters, Chair of the US House of Representatives Financial Services Committee, announced that the entire committee will hold a hearing on December 8th, since Bitcoin magazine reported.

XLM traded indecisively for most of November, but the bulls suddenly reappeared, causing the price to retest the $ 0.36 high on December 3rd. Recently, Litemint (a longtime ecosystem participant) launched the NFT marketplace, which allows users to mine NFT on Stellar.

If XLM can Extend the protest in December?

Just like most of the other coins on the market, XLM made many ups and downs this quarter. Gloomy September pushed prices down 30% despite reaching local highs. After that, prices recovered in the first half of October, but quickly consolidated.

In general, November isn’t much better as the red candle is longer than the green candle. Currently, in December, the altcoin is recovering quite well at number 23 in terms of market capitalization. In fact, XLM rallied parabolically on the daily chart.

At this point the question remains whether this altcoin can continue to rise in the coming days.

XLM / USDT | The source: TradingView

XLM’s market capitalization has plummeted over the past few months. This means that XLM cannot claim a dominant position compared to other top coins. During the March to May period, when the XLM price peaked, it had nearly three times the dominance rate.

Only when this metric picks up and tries to hit previous highs again can XLM move higher.

XLM market capitalization | The source: Messari

In addition, sentiment towards XLM is also tending more towards the negative. The positive sentiment (25.10) is slightly higher than the negative sentiment (20.31) at the time of the analysis, but it should be noted that the corresponding curves have changed the direction of movement.

The positive sentiment curve is down, while the negative sentiment curve is up. This essentially underscores the community’s lack of trust in XLM, which isn’t a good sign.

Positive mood (green) and negative mood (orange) | The source: Mood

Despite the unhealthy state of the indicators, yesterday’s 7% increase is one of the highest among the top 30 cryptocurrencies. It should be noted, however, that a price increase does not go hand in hand with an increase in quantity.

Looking at the graph, sustained rallies are always accompanied by increased volume, while dead cat impact is not. As expected, the price has plummeted by almost 10% in the last 24 hours.

So don’t expect a sustained rally off the coin unless and until momentum returns to the XLM market in the form of increased trading volume.

Amount of smoke (red) | The source: Mood

Optimistic signal

However, XLM’s NVT remains around the highs. This indicates that the network value is currently far in excess of what is being transmitted on the network. At this point it can be said that Stellar is currently in a macro growth phase.

In addition, the development has advanced rapidly in the last few weeks. In other words, the developers are actively working on the ecosystem and improving it. All in all, this means that XLM can remain relevant and valuable in the long run.

So while the short-term outlook doesn’t look very glamorous, the long-term outlook looks pretty good.

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