Stellar (XLM) lumens price is bouncing back after it declined to $0.3673 yesterday. It is trading at $0.400, which is 9% higher than the lowest point yesterday. It is still 35% below its highest point this year.
What happened: Like most digital currencies, the price of Stellar Lumens rallied during the weekend as Bitcoin soared to an all-time high of $62,000. This rally was short-lived as the price declined by almost $10,000. This decline happened as investors worried about an impending cryptocurrencies ban in India.
Today, however, the Stellar Lumens price has bounced back as investors rush to buy the dip. Indeed, most cryptocurrencies, including Bitcoin, are slightly above their lowest point in the overnight session. What is Stellar? A common question among new traders is on what Stellar is. For starters, Stellar is a blockchain project that enables open and interoperable payment system. In its network, one can create assets that are representations of other fiat currencies or assets like gold and corn. Therefore, Stellar can be viewed as an advanced version of Tether, the widely used stablecoin. Lumens is the native currency for this ecosystem.
The four-hour chart shows that the Stellar price has been in a consolidation mode recently. It has oscillated between the support at $0.3850 and resistance at $0.4370. It has made a few false breakouts during this time.
Today, the price bounced back from yesterday’s low of $0.3678 to a high of $0.4113. It has also tested the upper side of the standard Bollinger Band. Therefore, in my view, I suspect that the XLM price will keep rising as bulls target the resistance level at $0.4370, which is 10% above the current level. However, another retest of yesterday’s low at $0.3678 will invalidate the bullish thesis.
