• XLM price is stumbling with the resistance defined by the 50-day simple moving average (SMA) and symmetrical triangle apex.
  • Stellar is almost flat for the month after being down 30% on July 20.
  • Social media volume gets a brief boost on the Moneygram speculation, but nothing sustainable.

XLM price has climbed over 40% since the July 20 low, shredding the trading range defined by the descending parallel channel since the end of June. The rise has taken Stellar to a trifecta of resistance around $0.278, but enthusiasm behind a potential Moneygram deal is proving to be insufficient in busting the resistance. Until more concrete news emerges on the Moneygram discussions, XLM price could be flipped into a mild correction, releasing the price congestion generated by the rapid ascent.

XLM price needs to shake the chains of resistance before bolder outlooks can emerge

Since the 15.47% gain on July 22, inspired by speculation that the Stellar Development Foundation (SDF) was in talks to acquire Moneygram, XLM price has shown minimal follow-through with a 4.30% gain over the last four days. It is not the type of follow-through that should accompany a deal that could position Stellar for a global audience.

Amid the speculation, it is easy to overlook the importance of the price structure and the resulting indicators and levels. For example, XLM price tagged the symmetrical triangle apex at $0.278 and the 50-day SMA at $0.279 on July 23 but was quickly rejected. Today, Stellar is stalling at the two levels, this time reinforced by the 50-week SMA at $0.278. Moreover, the May crash low is $0.274, further strengthening the resistance.

To shed the imposing resistance, XLM price needs a daily close above the June 29 high of $0.293. However, Stellar will be challenged by another striking level of resistance at $0.300. It marks the May 19 low, and it was influential on XLM price in June. If the digital asset pushes through the levels, it will encounter resistance at the previous symmetrical triangle's apex at $0.341, logging a 13% gain from the May 19 low of $0.300.

XLM/USD daily chart

XLM/USD daily chart

If the XLM price advance is sustainable, Stellar should not correct beyond $0.242, or it would warn of a deeper decline and a potential test of the July 20 low of $0.199.

The big speculation about a Moneygram takeover did cause a brief jump in social media activity. Still, the Santiment Social Volume metric has fallen back into the prior range, and the 30 eight-hour simple moving average (SMA) remains essentially unchanged.

Additionally, based on the 30 eight-hour SMA peaks, the long-term trend in social media activity remains in a downtrend, highlighting a general lack of interest among the ranks of retail investors.

XLM Social Volume - Santiment

XLM Social Volume - Santiment

There is no disconnect between price and social media volume. Each popped on the Moneygram news, but the XLM price euphoria has dissipated, bending to the chart technicals. Meanwhile, social media volume has returned to the prior range, showing no enduring enthusiasm.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin eases ahead of key Federal Reserve decision on interest rates

Bitcoin eases ahead of key Federal Reserve decision on interest rates

Bitcoin retraces slightly, trading above $59,000 on Wednesday, as crypto markets brace for the upcoming interest-rate decision by the US Federal Reserve (Fed), which is expected to lower interest rates for the first time in more than four years.

More Bitcoin News
Why US citizens can’t participate in airdrops: Top house republicans ask SEC Chair Gary Gensler

Why US citizens can’t participate in airdrops: Top house republicans ask SEC Chair Gary Gensler

Crypto market participants in the United States are excluded from airdrops for legal reasons. Airdrops occur when crypto projects distribute their tokens to holders in a free or discounted manner, sending them directly to their wallet address or inviting eligible users to claim these crypto assets. 

More Cryptocurrencies News
DUSK price set for a rally after finding support around key level

DUSK price set for a rally after finding support around key level

Dusk (DUSK), a Layer 1 blockchain protocol that brings classic finance and real-world assets (RWA) on-chain, recovers initial weekly losses and recaptures the $0.210 level, up 5% in the day on Wednesday. 

More Cryptocurrencies News
Binance addresses WazirX and Zettai accusations on the July hack

Binance addresses WazirX and Zettai accusations on the July hack

The WazirX team and Nischal Shetty continue to mislead customers about a $230 million hack in July, according to Binance. On Tuesday, crypto exchange Binance addressed “inaccurate and misleading statements” from Zettai and WazirX regarding Binance.

More Binance News
Bitcoin: On the road to $60,000

Bitcoin: On the road to $60,000

Bitcoin price retested and bounced off from the daily support level of $56,000 this week. US spot Bitcoin ETFs posted $140.7 million in inflows until Thursday and on-chain data supports a bullish outlook.

Read full analysis
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

BTC

ETH

XRP