XLM price recovers after massive sell-off aided by two stablecoins launching on Stellar

  • Stellar is on its way to a 61.8% bullish retracement from support it respected at $0.0796.
  • Stellar Development Foundation and GMO-Z.com Trust Company announce the launch of GYEN and ZUSD stablecoins.
  • XLM wastes no time recouping the losses incurred this week, bringing resistance at $0.1200 within reach.
  • Failure to break and hold above $0.1000 (immediate hurdle) could prematurely kill the bullish momentum to $0.1200.

Stellar price appears to be crawling back from the abyss after massive widespread declines were witnessed across the crypto market. The cross-border money remittance token tagged support at $0.0796 before rebounding to trade slightly above $0.1000. More buyers will join the market if XLM holds above this level, paving the way for another leg up to $0.1200.

GYEN and ZUSD stablecoins live on Stellar

The Stellar Development Foundation has partnered with GMO-Z.com Trust Company, Inc. to bring two stablecoins, referred to as GYEN and ZUSD, to the Stellar network. GYEN is the first regulated Japanese yen (JPY) stablecoin.

GMO Trust is based out of New York but is a subsidiary of GMO Internet Group (GMO Group), a Japanese Internet Conglomerate. With this new development, users will make near-instant and cost-effective transactions on the Stellar global blockchain network.

Users interested in learning more about GYEN and ZUSD can visit Stellar’s Twitter handle. However, the stablecoins will allow no-cost asset swaps between their Ethereum and Stellar network versions.

Buy signals back Stellar price recovery

The Moving Average Convergence Divergence (MACD) indicator is sending a buy signal on the four-hour time frame chart as the 12-day Exponential Moving Average (EMA) (in blue) crosses above the 26-day EMA (in red). A subsequent movement of the MACD toward the mean line (0.00) will further boost the momentum behind Stellar price, rendering the anticipated move above $0.1200 achievable.

XLMUSD four-hour chart

XLMUSD four-hour chart

The Stochastic Oscillator validates the increasing presence of bulls and their influence on the price. After falling into the oversold region (below 30.00), this indicator has broken out and is almost clearing the neutral area.It may cross into the overbought region before Stellar price considers another trend correction.

A movement above and hold of support at $0.1000 will increase XLM’s chances of jumping above $0.1200. On the other hand, a retracement to the 23.6% Fibonacci at $0.8838 is possible, although this too could be bullish in the long run, allowing bulls to collect more liquidity ahead of another attempt at rising above $0.1200.


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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Why Bitcoin remains sideways despite record BTC ETF inflows

Why Bitcoin remains sideways despite record BTC ETF inflows

Bitcoin's relative range-bound movement in the past few months, despite record net inflows of $12 billion across spot Bitcoin ETFs, has sparked worry among investors. Many analysts predicted a highly bullish outlook for Bitcoin when the ETFs launched.

More Bitcoin News

UwU Lend offers bounty reward to uncover its exploiter

UwU Lend offers bounty reward to uncover its exploiter

In a Thursday broadcast, UwU Lend consents to a $5 million bounty reward in ETH to whoever discovers the identity of the hacker(s) who breached their protocol. The DeFi protocol has reportedly suffered another breach, which cost $3.72 million.

More Cryptocurrencies News

AAVE price tumbles 20% in 2024 despite doubling its total value locked

AAVE price tumbles 20% in 2024 despite doubling its total value locked

AAVE, a decentralized crypto lending platform, has noted a massive spike in the total value of assets locked (TVL). Rising TVL is considered indicative of higher relevance among market participants and trust in the platform. 

More Aave News

SEC Chair says Ethereum ETF S-1 approvals likely to come over the summer

SEC Chair says Ethereum ETF S-1 approvals likely to come over the summer

Ethereum was down nearly 5% on Thursday as SEC Chair Gary Gensler suggested spot ETH ETFs will likely receive approval over the course of the summer. The update was accompanied by mixed sentiment from derivatives traders.

More Ethereum News

Bitcoin: Is BTC ready for a new all-time high?

Bitcoin: Is BTC ready for a new all-time high?

Bitcoin whales have increased buying activity to the highest level in two months. Investors show no signs of FOMO despite BTC’s recent tussle with the  $70,000 mark. US spot Bitcoin ETFs experienced a notable uptick in activity, reflecting growing market interest.

Read full analysis