Nick Chong · 2 days ago · 2 min read
Stellar Lumens has managed to decouple from the rest of the cryptocurrency market over the past few hours. The bullish momentum pushed the price of this cryptocurrency up over 15 percent. XLM rose from trading at a low of $0.062 to recently hit a high of $0.071.
Meanwhile, Bitcoin has remained stagnant mostly trading within a narrow range. This consolidation area is defined by the $7,600 support and the $7,780 resistance level.
Social engagement metrics explode
Santiment, a behavior analytics platform, stated that April has been critical for Stellar’s market value. Throughout this month, XLM has gone up by more than 80 percent.
The substantial upswing helped recover all the losses incurred during the March market meltdown. Consequently, increasing the amount of “XLM” mentions across different social media platforms. These include Telegram groups, crypto subreddits, Discord groups, private traders chats, many more.
“Stellar has continued its phenomenal month of April with social dominance and social volume continuing to surge as the crowd figures out whether its run can continue.”
All the chatter around Lumens is overwhelmingly positive, according to The TIE’s daily sentiment score. This fundamental index measures all the conversations on Twitter about a particular asset and crushes them into a value. A score above 50 implies that conversations have been positive while a score below 50 suggests otherwise.
Currently, the daily sentiment score of Stellar is hovering around 85, which is the highest it has been in over a month.
Although it is not certain the fundamental reasons behind XLM’s uprise, the Stellar Development Foundation (SDF) revealed that it is evaluating the introduction of a new method for regaining access to Stellar accounts after private keys are lost. This innovative development aims to solve an “age-old problem in the cryptospace.”
SDF affirmed in a blog post:
“In the past, if you lost your private key you also lost control of your account. Using this protocol, the user or wallet will preregister the account and a phone number or email with two or more servers implementing the SEP [Stellar Ecosystem Proposal], and it will add those servers as signers of the account. No individual server will have control of the account, but collectively, they can help the individual recover access to the account. It’s essentially a standard for a robust multisignature implementation.”
As the sentiment around XLM continues to run high, Weiss Crypto Ratings told market participants to stay cautious. The financial ratings agency pointed out that different indicators show that Stellar could be reaching an exhaustion point. As a result, a correction might be underway.