The Stellar Lumens price is under pressure. The XLM is trading at $0.5280, which is about 8% below its highest level yesterday but up by 35% below its lowest level during the weekend. The total market capitalization of Stellar is at $12 billion while its ranking has dropped to 16.
What is Stellar? Stellar is a blockchain project that was launched in 2015 to decentralize the payment industry. The network allows users to create and issue digital assets like currencies. In other words, the network allows people to develop currencies like Tether, the stablecoin that is tied to the US dollar. Stellar Lumens is the native currency for the ecosystem.
In the past few months, Stellar price has surged as the number of people using the system have risen. This has seen the XLM rise by more than 600% in the past 12 months. The growth has been driven by low-interest rates and the overall easy money environment. Further, as Binance CEO said yesterday, many day traders have embraced other altcoins as a way of betting on Bitcoin.
The daily chart shows that the XLM price has been on a slow upward trend recently but the momentum has waned. The currency remains between the ascending channel that is shown in red. To some extent, this channel can be said to be a bullish flag, which is usually a positive sign. Also, it is slightly above the 25-day and 15-day EMA.
Further, Stellar seems to have formed a small cup and handle pattern. Therefore, the pair might resume the upward trend. To do that, bulls will need to push it above $0.6855, which is the YTD high. This prediction will be invalidated if the price drops below the lower side of the ascending channel.
Please don’t consider this investment advice. Views expressed here are those of the writer and the writer and InvestingCube will not be held liable for any losses.
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