Compared to some of its peers the Stellar Lumens price has held up well. The XLM coin is last trading at $0.6230, just 20% off its all-time high.
Two days ago, XLM was trading at its all-time high of $0.7800 and +841% since the start of 2021. The stellar lumens price has since retreated. However, the coin has still shown investors a 650% return in the first 18 weeks of the year.
In its simplest form, the Stellar network aims to simplify cross-border payments. Similar to Ripple, it competes with traditional payment providers.
In fact, Stellar was founded by Jed McCaleb who left Ripple in 2013 and the Blockchain was created after a hard-fork from the Ripple protocol.
The 1-day price chart shows us that the coin has been in a continuous uptrend since the beginning of the year. It has, like its peers experienced bouts of extreme volatility along the way,.
The dips have attracted buyers, and I expect any extension of the current sell-off to do the same.
The lower end of the ascending channel is at $0.44. This also happens to be the 50% retracement of the latest bull-run. If the Stellar Lumens price trades lower from here, an opportunity for a long trade emerges as we approach this key support level. Buyers may wish to enter the market if the Stellar lumens prices drops below $0.500.
Longs should then place stops below the 23rd of April low at $0.3900. A failure to hold this level would suggest a deeper sell-off towards $0.2000.
Of course, there is no guarantee that the market enters the buy zone below $0.500. If the price can consolidate here and move higher through the 6th of May high at $0.6900, it can continue to the ATH.
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