Stellar (XLM) has recorded a 50% price increase in the past 24 hours, becoming the best performing asset during this period. This impressive price surge is said to originate from the 10-K report filed by Grayscale Investments LLC with the U.S. Securities and Exchange Commission (SEC) regarding the Grayscale Stellar Lumens Trust.
At the time of writing, the price of this altcoin has reached $0.51, which is the highest level since 2021. However, signals from the daily chart suggest the possibility of a short-term correction.
On Friday, Grayscale Investments LLC filed the 10-K report for the fiscal year ended September 30, 2024. The report shows that the net asset value of the Grayscale Stellar Lumens Trust (XLM) increased by 10% during the fiscal year under review.
The 10-K report is an annual report that publicly traded companies in the U.S. must file with the SEC, providing an overview of financial performance, including audited financial statements, business operations, risk factors, and management's analysis.
According to the report, the Grayscale Stellar Lumens Trust (XLM), an investment vehicle providing exposure to XLM, incurred losses due to a decline in token prices during the review period and fees paid to the fund's sponsors. However, these losses were offset by the addition of 34,875,230 XLM tokens to the fund. This resulted in a net increase in the fund's total assets.
The positive news from this report has driven the value of XLM. Over the past 24 hours, the token price has increased by 58%, making it the strongest growing asset in the market. At the time of writing, this altcoin is trading at $0.51, marking an increase of more than 5 times from the low of $0.09 on November 5.
With the steepness of the price surge, the daily chart suggests it may not be sustainable. For example, the Relative Strength Index (RSI) of XLM is currently at an All-Time-High of 91.74.
RSI is an indicator that measures the overbought and oversold conditions of an asset in the market, with values above 70 indicating the asset is overbought and may correct, while values below 30 signal the asset is oversold and may recover. The XLM's RSI of 91.74 indicates the asset is in an overbought state and at risk of a price correction.
Therefore, the XLM price is likely to correct towards the breakout zone at $0.42. If the price holds this level, it may then rise to the next resistance zone at $0.78.
You can view the coin prices here.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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According to Beincrypto
