- Summary:
- Acquisition of more than 35 million XLM tokens by Grayscale cryptocurrency investment fund could be the catalyst for greater upside on Stellar Lumens.
A report released by the Stellar Lumens project indicates that the Grayscale Investments Hedge Fund has acquired a large amount of XLM tokens, taking the total holdings of the hedge fund to 35,855,625 XLM. This adds to the large swathes of Litecoin, Ethereum, and a few other altcoins that the hedge fund has purchased in the last month.
The purchase comes as institutional interest in the Stellar Lumens project starts to heat up. Furthermore, some projects are starting to jump on the project’s network. Stablecoin USDC has already transited to the Stellar Blockchain in a bid to make transactions faster and cheaper for users. Lately, gas fees for transferring USDC from wallets to exchanges such as Binance have become an increasingly expensive affair.
Technical Outlook for XLM/USD
Initially down for the day, the XLMUSD daily candle has shaved some of its losses on the news but still trades 1.09% lower. The active daily candle got rejected at the 42.39 cents resistance level. Price would need to break this price level to get a chance at targeting the immediate resistance above that level at 46.906 cents. Above that level, further targets to the upside reside at 52.465 cents and 60.9145 cents.
On the flip side, continued price suppression allows the pair to retest the 36.901 support level, with the 23 February low at 31.12 cents forming an additional downside barrier. However, these downside barriers, along with the 23.115 cents support, can only be achieved if the channel on the daily chart breaks down.
XLM/USD Daily Chart
