The Stellar Lumens price has been in a tight range in the past few days as cryptocurrency prices consolidates. The XLM price is trading at $0.1400, where it has been in the past few weeks. The coin’s price is above 40% from the lowest level this year. Its market cap has fallen from over $10 billion to slightly above $3.5 billion.
Stellar is a blockchain project that seeks to change how people move money. The network helps people to create, send, and trade digital representatives of money. It is a public project that has helped move over 2 billion operations by over 6.5 million operations. Lumen is its native digital currency that is used for initializing accounts and making transactions.
A good example of how Stellar works is that one can create a digital representation of the US dollar and send it around the world. The best example of this is USD Coin, the second-biggest stablecoin, which was created using Stellar’s technology. USDC is a stablecoin worth more than $53 billion.
The daily chart shows that the XLM price has been in a strong bearish trend in the past few months. It has fallen from its all-time high of $0.7985 to a low of $0.1400. In this route, it has fallen below important support levels at $0.200 and $0.1625, which are shown in red and blue. $0.1625 was the lowest level on February 25th.
Stellar price has moved below the 25-day and 50-day moving averages while the Average True Range (ATR) has continued falling. Therefore, at this stage, the outlook of the XLM price will continue falling as bears target the key support level at $0.1031, which was the lowest point in May. This prediction is in line with my previous Stellar forecast. A move above the resistance point at $0.1630 will invalidate the bearish view.
This post was last modified on Jun 10, 2022, 09:30 BST 09:30