Stellar is a decentralized protocol based on the blockchain. It allows cross-border currency transfers. As an open network for money, it makes digital representation easier for its users. You can transfer any currency such as Euros, Dollars, and Bitcoin.
It has emerged from the Ripple (XRP), a cross-border coin executive. Stellar came into the market in 2014 and published the coin Lumen. The aim is to make money flow easier beyond the boundary. However, the network has a close-knit team with different visions to expand the project.
The technology of Stellar is unique and can be used in different projects. Its importance has grown over time, and it has become a secure platform that can be used in different applications and projects. The Stellar network makes the transactions more scalable, faster, and less expensive. It aims to unite the world’s financial system on a single network. In short, it makes money borderless.
At the time of writing the post, the XLM is $0.25, and it is consolidating in a range between $0.23 and $0.40. After having a bull run from last year, November, it is now consolidating in the range. If you look at the daily chart closely, you can find that it is now at the support level and preparing a good momentum for swing trading.
The MACD is bearish from October, and the Moving Average is also going down on the daily chart. Moreover, the RSI is also weak at 35.
On the Bollinger Band, the last few candlesticks are in the lower half of the BB.
That means all the technical tools show Bearish momentum for Stellar (XLM).
Is it the right time to buy? Since the price is at the support level, investors can take this as a good entry point. It may even reach the resistance level of $30 soon. It is a good chart for short-term capital gain.
If you want to invest for the long term, you should wait for a breakout. The best time to invest for long-term investors will be the $0.50 level.
However, you can benefit from the consolidation by making a swing trade. The stop loss will be $0.20, and the target will be $0.35.
Due to inflation, liquidity in various countries, the stocks and cryptocurrencies are consolidating. Experts are waiting for the Fed meeting in the USA as the announcement will solidify all the indices and cryptocurrencies.
It would be best if you waited for a couple of more weeks to analyze the momentum of the chart. For more on Stellar price prediction, visit here!