Stellar lumens price is crawling back after it crashed to the lowest level since January last week. The XLM coin is trading at $0.2640, which is about 30% above the lowest level last week. This rebound has pushed its total market capitalization to more than $6 billion making it the 19th biggest cryptocurrency in the world.
The background. Stellar is blockchain project that makes it easier for companies to build fintech solutions. The network was built by Jed McCaleb, a computer scientist who was also a co-founder of Ripple. Today, many companies have embraced Stellar.
Some of the most notable companies that have built on Stellar are Circle, IBM, Franklin Templeton, Circle, Abra, and Tribal Credit have all built on the network. Lumens (XLM) is the native currency for the Stellar ecosystem.
While Stellar has an important use case, the price and volume of lumens has been in a downward trend. Data compiled by Nomics show that the total volume of Stellar traded on Sunday was worth more than $437 million. This is significantly lower than $1.5 billion that was traded on the same day in May. The downward trend is mostly because of the recent falling prices. So, what next for the XLM price?
The daily chart shows that the XLM price has dropped by more than 67% from its all-time this year. The coin has also managed to drop below the 61.8% Fibonacci retracement level. The price has also fallen below the 200-day, 50-day, and 100-day moving averages.
Indeed, a closer look at the chart shows that the 200-day and 50-day EMA are about to crossover. This is known as a death cross in technical analysis. Therefore, like I wrote last week, the path of least resistance for the coin is still lower. If it happens, the next key level to watch will be the 78.6% retracement at $0.2200. However, a move above the 61.8% retracement at $0.3440 will invalidate this trend.
Follow Crispus on Twitter.
