Yesterday, Stellar Lumens managed to break out from the bearish impact as its price jumped with a hefty boost before closing the day. The sudden and substantial price rise took the coin above $0.081 within an hour only.
Notably, exactly before an hour of this price shoot-up, the Stellar Development Foundation (SDF) revealed that it has destroyed half of its XLM tokens, cutting down its supply to 50 billion. The announcement was made by Stellar’s CEO Denelle Dixon at the Stellar Meridian conference. The foundation has burned 55 billion of its XLM tokens, while it had 105 billion XLM previously.
Though the price escalation of XLM coin appears largely due to the announcement, the over-all positive crypto-market also gave a leg up to the coin. Till 23:00 UTC yesterday, XLM price was struggling to climb above $0.070. Following the announcement, the coin sharply climbed above $0.089 with an increase of more than 27%.
Stellar Lumens Price Prediction:
However, Stellar price is correcting down since today morning and has recorded a pullback of 8.48% till now. The correction has pulled the coin near $0.081, though, bulls may push the coin further considering the slightly bullish market sentiment.
The price rise shows how the coin and the market have positively reacted to the announcement by the Stellar Foundation. SDF affirmed that the burn has been executed to improve the project by making it more efficient. With that, this move by SDF has received so many reactions from the ‘Twitterati’ crypto believers. Ryan Selkis, the co-founder of Messari, a prominent crypto platform has tweeted, “Stellar just set “$4bn” on fire, but I need to figure out what the airdrop was worth and whether I owe tax?”
Meanwhile, a crypto trader and analyst Luke Martin has also expressed his opinion regarding SDF’s recent step.
If $XLM can cut supply in half, they could also double it.
Alts can be great trading opportunities.
But it’s hard to justify holding many long-term with no ownership rights & at the mercy of a small centralized team.
— Luke Martin (@VentureCoinist) November 5, 2019
With a bit more crisp tweet, Alex Krüger, a market analyst noted how the foundation decided to “own 30 billion tokens worth something, than 85 billion worth nothing.” Amid that, a crypto trader and Co-founder of Blockroots.com, Josh Rager came up with a tweet,
$XLM just burned half their "total" supply
The current "circulating" supply didn't decrease from my knowledge, therefore I don't see the rush to buy (though it will pump hard)
There are still 50 Billion tokens, people act like it's a scarce asset 😄
— Josh Rager 📈 (@Josh_Rager) November 5, 2019
Coming back to the price trend of XLM, a steady movement above $0.079 is a must to maintain the bullish control. Here, the short-term SMA line (50-days) has crossed above the long-term SMA line (200-days) since the price rise, noting a bullish momentum. While RSI appears stable, MACD is heading towards the bearish zone with its signal line on the upside.
Moreover, XLM coin is likely to see resistance at $0.082 and $0.087 and support levels at $ 0.070, $0.065, and $0.062.