Stellar poised for recovery amid Paxos' PYUSD NOC, Archax partnership
|- Stellar’s declining trend holds above the 50-day EMA support amid positive fundamental developments.
- Paxos receives non-objection certification from New York State Department of Financial Services, stepping closer to issuing PYUSD on Stellar.
- Stellar and Archax collaborate to boost the tokenization of real-world assets.
Stellar (XLM) extends the declining trend for the fourth consecutive day on Tuesday, approaching the 50-day Exponential Moving Average (EMA) support at $0.3936. The news that Paxos is stepping closer to issuing the PayPalUSD (PYUSD) stablecoin on Stellar, along with the collaboration between Stellar and Archax, a UK-regulated exchange, fuels the fundamental optimism for a bounce back in Stellar.
Stellar collaborates with Archax to boost tokenization
Stellar announced a partnership between Archax and Stellar Development Foundation (SDF), aiming to tokenize real-world assets and offer lower costs, global reach, and instant settlement. SDF will make a direct investment in the Archax Group; however, the amount of the investment is not disclosed in the announcement.
With the on-chain development, a bridge between traditional finance and blockchain could catalyze demand for the Stellar blockchain and its native cross-border remittance token, XLM.
Paxos steps closer to issuing PayPal’s PYUSD on the Stellar blockchain
Paxos received a non-objecton certificate (NOC) from the New York State Department of Financial Services for the issuance of PYUSD stablecoin on the Stellar blockchain. The potential issuance would boost liquidity and demand for Stellar, as the entry of a Fintech giant would create waves across the Web3 world.
Stellar’s declining trend approaches crucial 50-day EMA support
Stellar edges lower by 2% at press time on Tuesday, extending the 2.36% loss from Monday. The declining trend approaches the 50-day EMA at $0.3936 as overhead pressure persists.
A clean push below this dynamic support could test the 100-day EMA at $0.3568, a 12% drop from the current market price of $0.4057.
The momentum indicators hold a bearish bias for Stellar on the daily chart as the declining Moving Average Convergence Divergence (MACD) and its signal line approach the zero line. A drop below the zero line would signal further correction with increased bearish momentum.
Additionally, the Relative Strength Index (RSI) is at 46 on the same chart, sloping downwards, indicating a loss in buying pressure. The RSI, distant from the overbought zone, suggests further room for correction before reaching saturation.
XLM/USDT daily price chart.
On the contrary, based on the recent news, a bounce back from the 50-day EMA at $0.3936 could repeat the near 30% surge as seen in early August. In such a case, XLM could reclaim the $0.5000 psychological mark, targeting $0.5112.
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