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Stellar (XLM) price analysis


With Bitcoin locked in a narrow range, the crypto market has been fairly stable for the past few days. However, there are some participants who have decided to continue generating significant profits. Such is the case of Stellar (XLM), which makes us wonder if it will be ready to overcome the next important barrier, close to USD 0.085. Then we find out with an analysis.

About Stellar

The Stellar network is an open source blockchain, which aims to facilitate value transfers, with minimal fees. At the same time, it offers its users a low cost access route to different financial services.

To simplify the explanation, Stellar wants to become the bank of the future, as a much cheaper alternative without intermediaries, in a network that settles transactions in real time, approximately between 2 and 5 seconds, with cryptographic security.

Since its founding in 2014, the network’s native cryptocurrency, known for its XML tag, has been on a historical uptrend. This is quickly identifiable if we look at the ROI of 2541% for initial investors who have not touched their position.

Being a chain focused on becoming an alternative to the current financial system, the massive adoption of the project will always be the priority.

For this, various associations have been made, one of the most important was the one signed with IBM in 2017. The agreement was made in order to create various currency brokers, to facilitate transactions in the South Pacific.

How to mine Stellar Lumens?

Stellar cannot be mined, as the maximum, 100 billion Lumens, was issued for his birth, with a fixed annual inflation rate of 1%.

Later in 2019, the community decided to end this inflation mechanism, and they reduced the total to 50,000 million.

Currently some 20,000 million XLM are in circulation, while the other 30,000 are in the custody of Stellar Development Foundation, in order to promote the development of the network.

Today the XLM price is $ 0.07861, its lowest low in history was $ 0.001227, and its highest at $ 0.9381.

XLM Price Technical Analysis

The weekly chart, a great place to watch the medium-term trend, is giving bullish signals. However, the price is struggling with a very important resistance zone, located between $ 0.089 and $ 0.079.

If Stellar (XLM) manages to get through this area, the space would be open for a very important revaluation, and for now, the odds are in favor of this happening in the short term.

The 8 EMA and 18 week SMA are crossed to the upside.

For this time frame to start signaling bearish, the support at $ 0.064 must be crossed.

Technical analysis of the weekly XLM USDT chart. Source: TradingView
Technical analysis of the weekly XLM USDT chart. Source: TradingView

Daily seasonality

The daily candle chart is giving us bullish signals for the short term, thanks to a succession of ever higher lows, supported by the EMA of 8, SMA of 18 and SMA of 200.

Recently resistance at $ 0.079 was crossed so the next target is $ 0.089.

If this supply zone is crossed, the free space will take the price up to USD 0.095. Then the next relevant level is $ 0.1050.

Stellar price analysis. XLM USDT chart. Source: TradingView
Stellar price analysis. XLM USDT chart. Source: TradingView

All our publications are for informational purposes, so they should not be accepted as investment advice under any circumstances.

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