XLM price shatters resistance as Chilean Peso-pegged stablecoin goes live on Stellar
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- XLM price climbs 21% for the week after breaking the resistance established by the Anchored VWAP from March 2020.
- Today Stellar approached the double bottom measured move target of $0.388.
- CLPX has launched the first Chilean Peso-pegged stablecoin on the Stellar payments network.
XLM price is now up 63.17% from July 21, beating the 24-day gain into the May high and the rally into the April high. The burst higher follows the breaking of the Anchored VWAP at $0.305 on August 11. The definitive breakout carried Stellar above the upper line of the ascending parallel channel that dominated price action since the rumors of a Stellar bid for MoneyGram on July 22. With two crucial resistance levels shattered, XLM price is positioned to soon tag the measured move target of $0.388.
CLPX plans to get traction in the remittance and copper markets
Launched on Monday, the Chilean Peso-pegged stablecoin is specifically designed to offer a cheaper alternative to the more traditional Peso-based remittances as it benefits from significantly lower fees for wire transfers and remittances on the Stellar Network.
The announcement stated that “the new CLPX token is set to streamline remittances and make it easy for investors to use the copper-linked Chilean peso as a hedge.”
The Chilean-based firm CLPX, owned by relatively unknown firm KB Trading, is focused on the opportunities available in the prosperous Chilean copper market. Chile is the world’s largest exporter of copper and the leading supplier of the red metal to China.
As of today, the stablecoin had seen limited volume of $14,976 from a total of 13,128 trades.
XLM price faces few technical obstacles
XLM price had methodically climbed in an ascending parallel channel from July 23 until August 11, finding notable resistance at the Anchored VWAP from March 2020. The breakout from the resistance points has established a new, more impulsive leg higher for Stellar that should culminate with a test of the 200-day simple moving average (SMA) at $0.397 or the 38.2% Fibonacci retracement of the May-July decline at $0.427.
Currently, there are no points of credible resistance that could derail the XLM price rally, excluding the double bottom measured move target of $0.388.
There is nothing of importance on the daily chart from an indicator perspective, but there is a bearish momentum divergence on the six-hour chart at today’s high that may forecast a pause or minor pullback for Stellar.
XLM/USD 6-hour chart
With resistance now becoming support for XLM price, Stellar benefits from the upper line of the broken ascending parallel channel at $0.322, the Anchored VWAP at $0.305 and the double bottom entry price of $0.293 if a wave of selling pressure emerges in the cryptocurrency complex.
XLM/USD daily chart
XLM price action is another example of broadening participation in the cryptocurrency market, positioning Stellar as a new leader with powerful upside objectives. As long as the double bottom trigger price at $0.293 resists any selling, the digital token can gain another 20% from the current price and test the 38.2% retracement level of $0.427.
Here, FXStreet's analysts evaluate where XLM could be heading next as it tests critical resistance.
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