Tanya Abrosimova
Independent Analyst
- Stellar has lost over 6% in a single day due to a massive sell-off.
- At the time of writing, XLM/USD is changing hands at $0.0651.
About 50 million Stellar coins were transferred to the US-based cryptocurrency exchange Kraken. This movement might have triggered the price collapse.
The Stellar Development Foundation (SDF) transferred 50 million XLM tokens to the Kraken exchange, according to Whale Alert, a Twitter bot. The fact that the Fund may be selling its coins might have caused the Stellar price collapse. The coin lost 5% in a matter of hours on Monday. At the time of writing, XLM/USD is changing hands at $0,0650, the capitalization of the asset has dropped to $1.3 billion.
Also, the company ended its $120 million airdrop, which might have also increased the bearish pressure on Stellar. The airdrop participants received 500 coins (about $35 at the current exchange rate) to their wallets. The airdrop participants often choose to sell the coins and thus influence the price of the asset.
In early November, the Stellar Development Foundation burned 55 billion XLM tokens or more than half of the entire issue. The burned tokens worth of $4 billion Caused a sharp price increase. The coin jumped by 16% in a single day.
XLM/USD, the technical picture
On the daily charts, XLM/USD moved below SMA50 (Simple Moving Average) and SMA100 (currently at $0.0660) We will need to see a sustainable move above this handle to mitigate the initial berish pressure and allow for an extended upside. The support is created by the lower line of the daily Bollinger Band at $0.0636.
XLM/USD, the daily chart
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