As the weekend approaches, most crypto assets are trading in the green after a profit-taking bout earlier in the week. Stellar (XLM) price advance from mid-November 2020 topped out at the February 14 high of $0.6083. After declining to lows of $0.3140, XLM price has been locked in a sideways pattern since. In the last few days, Stellar Lumens price has been trading in a tight range capped by the immediate hurdle at $0.4149. At the time of writing, Stellar is consolidating at $0.3989, having gained 2.70% in the last 24 hours and 4.37% weekly. XLM/USD targets breakout past the $0.41 range to reignite the bull run to new yearly highs. Ranking 13th largest, Stellar market valuation stands at $9.07 billion with a 24-hour trading volume of $813 million. Amid an ongoing cryptocurrency ban, the Stellar Development Foundation is investing $750,000 into Cowrie, a Nigerian remittance platform that uses the Stellar blockchain. In Nigeria, people are increasingly turning to crypto as a store of value and a vehicle for cross-border payments. Nigeria is also typically one of the world’s largest recipients of remittances.
*After declining to lows of $0.3140, XLM price has been locked in a sideways pattern since
*Stellar is consolidating at $0.3989, having gained 2.70% in the last 24 hours and 4.37% weekly
*The Stellar Development Foundation is investing $750,000 into Cowrie
Key Levels
Resistance Levels: $0.6083, $0.5250, $0.4399
Support levels: $0.3820, $0.3550, $0.3150
XLM/USD Daily ChartStellar (XLM) has remained in sideways trading action beneath the MA 50 ($0.4149) since the week’s start. However, the failure to rebound off the MA 50 indicates a lack of urgency among the bulls to buy at the current prices. The strength of the rebound off the MA 50 could give further direction about the next possible move. A weak bounce will increase the possibility of a drop back into the range to retest support at $0.38.
Further declines beneath this support level may cause XLM/USD to revisit the next support at $0.315. The RSI slightly below the midpoint shows the bears are attempting to gain the upper hand. Conversely, a strong rebound off the MA 50 will give XLM bulls the advantage. In this case, a break past the $0.4150 barrier cap may cause the XLM/USD to rally to $0.47 and then $0.52.
XLM/USD 4-Hour ChartThe bulls are struggling to hold stellar (XLM) above the MA 50 at $0.3952. If the bears sink XLM price below the MA 50, Stellar lumens could gradually start its descent to the support at $0.3675 and then to $0.3129.the 4- hour RSI is slightly above the midpoint, suggesting a possible range-bound action. If that happens, the XLM/USD pair could remain stuck inside the range between $0.365 and $0.4150 for a few more days.
On the contrary, this neutral to negative outlook will be invalidated if XLM rebounds off the MA 50 to breach the MA 200 resistance cap at $0.4284. In this case, a rally to $0.47 and $0.52 may be on the cards. The XLM/USD pair is only bullish while trading above the MA 50, key resistance is found at the $0.4399 and $0.5250 levels.
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