Stellar price has been showing strong momentum as investor attention towards newer blockchain networks with established development ecosystems continues to rise, alongside growing developer activity across the Stellar network.
This comes as recent reports by blockchain analytics provider Chainspect ranked blockchain networks based on developer output, showing Stellar to be among the top-performing ecosystems, thus providing further fuel to an already strong bullish narrative regarding XLM.
At press time, the Stellar price was trading at around $0.251, down 3.3% over the past 24 hours after rallying more than 26% during the previous week.
Stellar Price Action Spurred By Development Activity
Recent Stellar price increases coincided with the growing awareness of the development ecosystem. Just recently, data provided by Stellar indicated that Chainspect evaluated different blockchains according to the ability of developers to convert their work into products and contribute to ecosystem growth.
This allowed for Stellar to be categorized alongside a number of the largest players within the blockchain ecosystem. Therefore, it appears that developers are actively working with Stellar on an ongoing basis.
Developer activity has historically been viewed by investors as indicative of the long-term viability of a blockchain network, as they help create new applications, achieve broader use, and develop and nurture its respective ecosystem.
While developer activity may not result in immediate pricing moves, it provides support to the investor community during periods of elevated activity.
Also Read: Stellar Price Prediction: Could XLM Maintain Its Recovery Toward $11?
Significant Technical Levels Broken by Stellar Price (XLM)
According to the data from TradingView, the Stellar price experienced a substantial breakout to the upside during its recent uptrend, whereby XLM traded above both the 50-day and 200-day moving averages (MAs), which many traders utilize as indicators of trend direction over time.
To further demonstrate the breakout’s strength, momentum indicators continued to strengthen throughout last week as buying pressure increased; particularly, the Relative Strength Index (RSI) reached overbought levels following the size of the recent upward move.
While some profit taking has occurred in the short-term after last week’s gains, the fact that the Stellar price remains above its most recent reclaimed support suggests that the larger trend is still positive for now.
Also Read: Stellar Price Breakout Signals Potential 165% Upside Toward $0.681 Target
Can Stellar Price Benefit From Ecosystem Growth?
Recently updated developer rankings provide the Stellar community with a fundamental reason for optimism outside just the short-term sentiment of the market.
The presence of active builders within the ecosystem is generally viewed as an extremely important contributor to blockchain growth, as active builders contribute towards keeping their networks competitive in an increasingly saturated environment.
As traders evaluate the longevity of the recently experienced breakout, ecosystem growth may continue to be an important factor towards creating value for Stellar in the foreseeable future.
Should the network activity of Stellar continue to grow, then it is reasonable to believe that XLM could remain on the radar of investors evaluating portfolio opportunities in the coming weeks ahead.
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