The Stellar Lumens (XLM) price has been relatively volatile recently as investors ponder the next moves for the coin. The coin rallied to a multi-week high of $0.5778 yesterday and then dropped by 10% to the current $0.5212. Its market cap currently stands at $11.2 billion, making it the 13th biggest digital currency in the world.
What is Stellar? Stellar is a blockchain project that helps people create digital representation of money, like the US dollar and euro. This helps to create an open, borderless, and limitless method of moving money around the world.
In the past 24 hours, the network has made more than 1.47 million transactions from almost 10,000 active accounts. Stellar lumens, on the other hand, is a native token that powers the ecosystem. As part of the design, each account holder is required to have some lumens in a bid to reduce spam. There are about 50 billion lumens in existence and no more will be created.
The four-hour chart shows that the Stellar price rallied to a record high of $0.6087 in February this year. It then declined by 48% to $0.3145 as investors rushed to take profit and as US bond yields continued to rise. Since then, the XLM has been in a tight range as the original enthusiasm waned.
In the past two weeks, however, the price has been rising. It has risen by more than 50% from $0.3423 to today’s $0.5212. While this pattern is not perfect, the price seems to be forming a cup and handle pattern whose highest points are at $0.6087. It is also above the important resistance at $0.4385 and the 25-day and 15-day moving averages.
Also, the XLM price seems to be forming a bullish pennant pattern. Therefore, in my view, the bullish trend is still intact. However, for it to continue, bulls will need to move above the important resistance at $0.6087.
