• Stellar Network saw several of its nodes go offline on April 6.
  • This malfunction led to a temporary halt in transaction validation.
  • XLM price eyes a retracement as investors book profit near the local top at $0.60.

Stellar network’s validator nodes experienced an unexpected breakdown recently. During the same period, the XLM price also hit a dead end and is eyeing a pullback.

Validators crash, but Stellar network continues operation

On April 6, several Stellar Development Foundation’s (SDF) validator nodes temporarily stopped validating transactions, which resulted in a halt for some transactions while others progressed as usual.

In a blog post, the SDT team stated:

During the entirety of the SDF node downtime, the Stellar network remained online. Because it is decentralized, and the majority of Stellar network validator nodes were still functioning, the network continued to process transactions.

Although the SDF worked to resolve the issues quickly, popular exchanges like Binance, Bitfinex and Bitstamp reported this issue as they halted withdrawals.

Despite the recent setback, there are also positive news surrounding Stellar, as investment company Grayscale increased its XLM holdings by purchasing 5.5 million tokens last week.

Grayscale XLM holdings chart

Grayscale XLM holdings chart

The recent addition brings their total holdings to 68.59 million XLM, worth approximately $37 million at the current price.

XLM price may reverse as major red flag develops

The XLM price has failed to create a higher high as it faces resistance at the ascending parallel channel middle line. The technical formation is formed as a result of higher highs and higher lows connected using trend lines.

After creating a swing low on March 25, the remittance token was on a trajectory toward the channel’s upper boundary. However, the XLM price journey faced a blockade around the previous local top at $0.60, which coincides with the middle line.

A rejection here might send the Stellar price crashing toward the lower boundary at $0.41. However, this downtrend will likely face exhaustion after a 22% drop to $0.37, which is the State Trend Support set up by the Momentum Reversal Indicator (MRI).

If sellers overwhelm the level mentioned above, the XLM price could slide another 10% to a subsequent demand barrier at $0.33.

Adding credence to the bearish outlook is the recently spawned cycle top signal presented in the form of a red-one candlestick on the 1-day chart. This setup forecasts a one-to-four candlestick correction.

XLM/USDT 1-day chart

XLM/USDT 1-day chart

A potential spike in buying pressure that would push the XLM price above the MRI’s breakout line at $0.70 might catalyze the buyers to pile up. Such a move would provide the remittance token a chance to surge toward the ascending parallel channel upper trend line around $1.42.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Ethereum price on cusp of massive breakout if key level holds

Ethereum price had a significant 23% correction in the past week but holds above a key support level on the 12-hour chart. The digital asset still has robust on-chain metrics supporting it and aims for a rebound.

More Ethereum News

VeChain consolidates as clear trend fails to establish

VeChain price has been on a tear since the start of 2020 and shows no sign of slowing down despite the recent market crash. Now, VET awaits a volatile breakout from its consolidation to establish a clear trend.

More VeChain News

Chainlink could be the first to recover amid market crash

Chainlink, like the rest of the market, has experienced a significant correction in the past four days However, the digital asset continues to hold above a crucial support level and on-chain metrics show it could be one of the strongest during this correction.

More Chainlink News

Cardano on-chain metrics reveal paradigm shift in nature of investors

Cardano price shows the loss of momentum from the buyers’ end, which has resulted in a breakdown of a critical support level. Now, a continuation of this momentum could ensue as blockchain data reveals a grim future for ADA.

More Cardano News


Bitcoin Weekly Forecast: Institutional wave of BTC adoption follows new all-time highs

Bitcoin price hitting a new all-time high and Coinbase’s direct listing are perhaps two of the most important developments surrounding the pioneer cryptocurrency over the past week.

Read the weekly forecast