Stellar (XLM) reluctant to expand its resistance

XLM is the native token of Stellar, an open-source, decentralized payment network designed to build a fast and efficient payment system to dominate the market. The main advantage of Stellar is that it uses XLM tokens as transaction fees, which are kept to a minimum for continued growth.

There is often an argument to mark this deal as free, but the potential for spam items and arbitrary data to overwhelm database systems is the real challenge. The current net supply of XLM is 50,001,787,643. Initially, the trading volume was over 100 billion tokens, growing by 1% per year. However, the system was curbed following a community vote in 2019.

Based on the XLM token valuation during the golden cryptocurrency period, the blockchain has grown substantially from January 2020 to May 2021. A return to pre-2020 breakout levels suggests the market is not doing as well as expected. The reopening of the post-pandemic world economy may also temporarily negate the need for decentralized payment networks.

Stellar prices are trending negatively, with more emphasis on consolidation. There has been considerable volatility recently, but price action has barely scratched the surface. Read the Stellar price prediction to learn more about the coin’s predicted performance in the future.

Short-term hourly price action can help traders plan their short holdings. The sudden lucrative booking activity on July 24 pushed the value up from the weekly high. The drop in momentum has put the price of XLM on the verge of collapse on the hourly chart.

Last week, the action was seen as consolidating. Despite rising buying sentiment, Stellar prices have either failed to sustain high value or succumbed to regular profit bookings. The bearish crossover that started yesterday will have a strong hold on the negative trend of XLM. A break above the $0.1091 mark could push the price further below the immediate support at the $0.1000 mark.

Stellar’s technical indicators have now turned highly bearish, which could be catastrophic for buyers who have been hoping for a breakout since July 18.

The weekly chart for XLM shows a severe drop compared to January 2022 values. Negative sentiment has been haunting buyers, causing the RSI indicator to fall, which has now touched 33.

To show its momentum is strong, Stellar must stand above $0.2472, which would require a huge upside gain from its latest trading price of $0.1099. With XLM marking a slightly stronger bullish crossover, a continuation of the buying trend could bring the spark back to XLM.

Source of information: Compiled from CRYPTONEWSZ by 0x information.The copyright belongs to the author and may not be reproduced without permission

Related Posts