The Stellar price is consolidating as traders wait for a catalyst. The XLM price is trading at $0.40, where it has been in the past few days. Its market cap has dropped to $9 billion, making it the 14th biggest digital currency in the world.
After a strong rally in the past year, Stellar Lumens have hit a wall. Its price is more than 900% above where it was in the past 12 months. It is still about 35% below the all-time high of $0.6065. The recent weakness is mostly because of lagging interest in the currency as most investors consider it to be overvalued.
Also, the recent performance of Bitcoin and Ethereum has dragged other digital currencies. In the past, there has been a close relationship between the price of the major cryptos like BTC and ETH and the smaller ones like Stellar and Binance Coin.
The daily chart shows that the Stellar price has been in consolidation mode recently. This is evidenced by the moving averages, which are consolidating at the current range. Also, the average true range (ATR) and Historic volatility have dropped, in a sign that there is no volatility. It also seems to be forming a small symmetrical triangle pattern.
Therefore, this could be a calm before the storm, meaning that a breakout could soon happen. Since this is a symmetrical triangle, it means that the XLM price will breakout in either direction. The key levels to watch are $0.45 and $0.366.
