Stellar (XLM) has been on a roll recently surging by more than 60% during the past 12 days outperforming most cryptos including Ethereum. According to a recent report by ‘Santiment’, Stellar has not only seen an increase in price but also in social activity.
Stellar is up 9.1% in the past 24 hours when it comes to social volume and dominance. This number is calculated using the total number of text documents that contain something about Stellar at least once, it can be the name Stellar, XLM, or directly related words.
Social Volume Can be an Important Factor in The Crypto Industry
Although social volume is not often used in traditional stocks or markets, it can have a tremendous impact when it comes to cryptos as they are highly affected by social media. We have seen Bitcoin and others crash plenty of times because of possible bans coming from China and most of the time the reports were not even accurate.
Social Media can have a huge impact on lower market cap cryptos. A high social volume doesn’t necessarily mean that a specific crypto will blow up, however, it does mean that there is a lot of interest for it and if it’s already in a bull run, it will probably continue to be strong in the short-term.
The biggest issue when it comes to social volume is the accuracy of the metric. It can be extremely hard to accurately calculate the ‘real’ social volume but we are getting better at it.
Is Stellar Going to Slow Down?
After 2 weeks of huge gains, traders expect Stellar to slow down and consolidate in the next few days. The daily RSI is overextended at 80 points and will likely stop the bulls from seeing more gains in the short-term.
Stellar has seen a significant drop in trading volume since April 24, however, it seems to be picking up the pace again with more than $800 million today. The digital asset has experienced a huge increase since April 1 when the average 24 hours trading volume was only around $300 million.
This recent increase in volume in the last 2 days is concerning for the bears as it seems that bulls might actually go for another leg up in the next few days.