Stellar approved as ‘Sharia Compliant’ by the Central Bank of Bahrain: XLM/USD resumes the uptrend

The Central Bank of Bahrain (CBB) is reported to have approved one of the top ten cryptocurrency projects, Stellar.org as Sharia Compliant. This news means that Stellar is approved to work under the Islamic law. Significantly, Stellar.org can show the Sharia certification without conflicting with the CBB. Moreover, the project can be used within the Islamic faith in the country.

The approval is not only a huge milestone for Stellar, but also for the entire cryptocurrency industry. The use of virtual currencies in Islamic faith societies is seen as unregulated and has always carried with it a cloud of uncertainty. This development will definitely open the way for cryptocurrency enthusiasts within the faith to carry out activities confidently within the law. A spokesperson from Stellar is reported by the News of Bahrain to have said:

“We advance our mission of financial access and inclusion by obtaining a Sharia compliance certification for the Stellar technology and network. The Shariyah Review Bureau (SRB), a leading international Sharia advisory agency licensed by the Central Bank of Bahrain, has reviewed the properties and applications of Stellar and has promulgated guidance and guidelines that enable Sharia-compliant applications of Stellar technology in Islamic financial institutions.”

Stellar price analysis

Stellar recently broke past the critical resistance at $0.30 but the bullish movement encountered resistance at $0.34 marking the beginning of a bearish trend. A sharp descent occurred on July 27, last Friday, breaking the 61.8% Fib support between the highs of $0.353 and lows of $0.229 at $0.3059. More declines followed in short candlesticks over the past weekend.

The trading on Monday (yesterday) witnessed continued bearish pressure dominance, but a short-term support was formed at $0.280. However, the price broke down further on Tuesday but the support at $0.260 stood its ground. Currently, there is a bullish trend forming on the chart. Besides, Stellar has made it above the 38.2% Fib retracement level. The trend is turning bullish at the moment, similarly, the stochastic is pointing upwards, staging a recovery from the oversold region. In addition to that, the moving average gap is narrowing to mean that buying entries are increasing and more upside retracement is expected in the near-term.

XLM/USD 2-hour chart