Stellar price analysis: XLM/USD going through rough ways to the stars, gaining over 35% in 7 days
|- XLM/USD is the growth leader among top10 coins on a daily basis.
- Bulls need a sustainable movement above $0.2825.
Stellar (XLM), the sixth largest coin with market value $5.6B is trading close to $0.28 handle after a short-lived spike above $0.30 on Sunday. The coin is the growth leader on a day-to-day basis and a strong gainer in 7 days time. Notably, Stellar's price growth is accompanied by a sharp increase in trading volumes; the average daily volume reached the highest level since July 2018 and settled at $289M.
Sure enough, Stellar is driving the bullish wave created by Ripple's cryptocurrency. It is worth noting that both networks are aimed at creating fast, efficient and cheap solutions for cross-border payments. While Ripple's news was the primary driver for the market momentum, Stellar also has something to crow about. Thus, earlier this month Lightyear Corporation - a company focused on Stelar solutions - merged with Chain Inc. to create a new enterprise called Interstellar with the aim to increase the customer base and promote Stellar-based products that enable companies to issue and manage assets on Stellar's network.
Stellar's technical analysis
XLM/USD is currently capped by $0.2825 resistance created by 38.2% Fibo retracement for the upside movement from June 29, 2018 low. Once it is cleared, the coin will have a chance to continue the upside with the next aim set at $0.2900 and followed by the ultimate bullish goal at $0.30. A sustainable break through the above said hurdle would take us to the next Fibo retracement (23.6%).
On the downside, the closest support is created by $0.2600, guarded by 50% Fbo retracement and SMA50 (1-hour chart). Once it is cleared, the bearish correction may gain traction and take the price to $0.2400 (61.8% Fibo and Sunday's low). A sustainable movement below this area will signal that the upside momentum has faded away.
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