Stellar Price Continues to Drop Over the Past Week
Stellar, the massive medium of exchange, is among the top 20 coins of the market due to its lucrative platform. XLM coin trades with a bearish pullback due to loss of momentum in the entire crypto market, along with a strong resistance held by Bitcoin at $14k.
The Stellar Network has gained enough traction from the investors as it one of the fastest and cheapest platforms available to build it in the most user-friendly way if needed. Alongside, Stellar is working all the efforts towards including a massive range of financial entities for those who are unable to access traditional banking services.
Fun fact: #digitalasset $XLM (the underlying coin of Grayscale Stellar Lumens Trust) strives toward greater financial inclusivity by connecting a wide range of entities – especially those without access to traditional banking services. Feelgood #investing. https://t.co/Oi3mqeoeNW
— Grayscale (@Grayscale) October 28, 2020
Moreover, the largest cryptocurrency exchange, Coinbase, has planned to launch its own crypto debit card in the United States in the early half the next year. This card will lead to spending all the listed cryptos by the exchange at the Visa supported merchants directly from one’s own account just like you would spend your funds available in the bank account through a debit card.
However, the major attraction here is receiving the rewards against the spending, which will be earned by the Americans in the form of 1 percent in BTC or 4 percent in XLM. This will lead to greater adoption of these lucrative digital assets, which includes Stellar as well.
Stellar Price Analysis
Today, XLM price was seen trading close to $0.080 around $0.078 and $0.079 and is clearly drawing a head and shoulder pattern on the daily chart against the US Dollar. However, intraday remains bearish, and the price trend is seen approaching the lower Bollinger Band with a negative sentiment hovering at the end of the ongoing month.
While drawing the right shoulder, the candlewick of the Stellar price trend was seen breaching the 38.20% fib level. However, with a gradual pullback in over eight days now, it has dipped below the 38.20% fib retracement level and is approaching to breach 50.0% fib.
Although, the XLM coin may appear losing from the YTD high marked at $0.119 against the current trading price below $0.080 and has lost a significant 34% value. However, the coin’s strengthening power is stronger and had previously gained 350% in 5 months from the YTD low marked at $0.0260.
The MACD indicator draws a clear bearish crossover due to downward correction over the past eight days. The RSI is lying at 48.77 and is away from hitting the extremities but is inclined towards the support due to a gradual dip in the Stellar price. Our Stellar Lumens prediction reflects the possibility of price correction. The XLM price might face decline and cross its previous support $0.061 soon.