Stellar Lumens (XLM) Has Been in Consolidation Since May
Stellar Lumens is a decentralized, peer-to-peer open-source software. It allows complete digital currency representation across the globe and works together under one ‘Stellar’ network.
Jed McCaleb founded it in 2014. The aim is to make money flow easier, safer, and faster without third-party approval; that is why it is a decentralized platform of transactions. It means you do not have to open an account, verify your identity for sending money to family and friends. Moreover, it supports international fund transfers.
XLM is a currency of the Stellar network, and it helps to trade and transfer any currency in the Stellar network with better security and control. It works on the Stellar Consensus Protocol that uses Byzantine Fault Tolerance to attain the consensus.
At the launch time, 100 billion lumens were created, and the authority proposed to increase 1% of supply every year for the next five years. However, the total supply of lumens in 2019 was reduced to 50 billion, and no more lumens will be created in the future.
The interesting thing is the price never touches $1. The ATH of this coin is $0.93. However, it has been consolidating since May 2021.
It is in the range of $0.22 and $0.44, which means we can say that it has made a strong support level around $0.22 and resistance of $0.44. When writing this article, the price is $0.33 and making a new support level around $0.32.
However, it is hard to assume the direction. It is in the consolidation phase, so we cannot tag bullish or bearish signs for this coin. Indeed, it may come down to $0.22 again because MACD is bearish. Moving Average line is also reflecting the same. The RSI is just below 40, which is not a good sign for a price chart.
Though the Bollinger Band is neutral, the candlesticks are bearish in the BB. The last one-day candlestick is forming far lower than the baseline.
It is not a good time for investment because the price may fall soon and reach the previous support level. Besides that, it is in a consolidation phase without having a strong fundamental base. That is why investing in the price range will not be a wise decision; rather, you should wait for a couple of months as per XLM price prediction.
It has not shown any bullish sign since May 2021. It has taken a short bullish trend in July and October, but in both cases, it could not cross the resistance level around $0.44. Now it is coming down again. We would not recommend you to invest in such a falling market.
Please remember that the cryptocurrency market is highly volatile. You should invest the money you can afford to lose. Do not take risks and consult with an expert before investing.
All the information shared in this article is for knowledge, and do not make any decision based on this article. You should invest in cryptocurrency after proper research.