• XLM price climbs 21% for the week after breaking the resistance established by the Anchored VWAP from March 2020.
  • Today Stellar approached the double bottom measured move target of $0.388.
  • CLPX has launched the first Chilean Peso-pegged stablecoin on the Stellar payments network.

XLM price is now up 63.17% from July 21, beating the 24-day gain into the May high and the rally into the April high. The burst higher follows the breaking of the Anchored VWAP at $0.305 on August 11. The definitive breakout carried Stellar above the upper line of the ascending parallel channel that dominated price action since the rumors of a Stellar bid for MoneyGram on July 22. With two crucial resistance levels shattered, XLM price is positioned to soon tag the measured move target of $0.388.

CLPX plans to get traction in the remittance and copper markets

Launched on Monday, the Chilean Peso-pegged stablecoin is specifically designed to offer a cheaper alternative to the more traditional Peso-based remittances as it benefits from significantly lower fees for wire transfers and remittances on the Stellar Network. 

The announcement stated that “the new CLPX token is set to streamline remittances and make it easy for investors to use the copper-linked Chilean peso as a hedge.”

The Chilean-based firm CLPX, owned by relatively unknown firm KB Trading, is focused on the opportunities available in the prosperous Chilean copper market. Chile is the world’s largest exporter of copper and the leading supplier of the red metal to China.

As of today, the stablecoin had seen limited volume of $14,976 from a total of 13,128 trades.

XLM price faces few technical obstacles

XLM price had methodically climbed in an ascending parallel channel from July 23 until August 11, finding notable resistance at the Anchored VWAP from March 2020. The breakout from the resistance points has established a new, more impulsive leg higher for Stellar that should culminate with a test of the 200-day simple moving average (SMA) at $0.397 or the 38.2% Fibonacci retracement of the May-July decline at $0.427.

Currently, there are no points of credible resistance that could derail the XLM price rally, excluding the double bottom measured move target of $0.388.

There is nothing of importance on the daily chart from an indicator perspective, but there is a bearish momentum divergence on the six-hour chart at today’s high that may forecast a pause or minor pullback for Stellar.

XLM/USD 6-hour chart

XLM/USD 6-hour chart

With resistance now becoming support for XLM price, Stellar benefits from the upper line of the broken ascending parallel channel at $0.322, the Anchored VWAP at $0.305 and the double bottom entry price of $0.293 if a wave of selling pressure emerges in the cryptocurrency complex.

XLM/USD daily chart

XLM/USD daily chart

XLM price action is another example of broadening participation in the cryptocurrency market, positioning Stellar as a new leader with powerful upside objectives. As long as the double bottom trigger price at $0.293 resists any selling, the digital token can gain another 20% from the current price and test the 38.2% retracement level of $0.427.

Here, FXStreet's analysts evaluate where XLM could be heading next as it tests critical resistance.

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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Chainlink to present buy opportunity before LINK rises to $38

Chainlink price could create one of the most sought-after bullish entry setups in Point and Figure analysis: the Bullish Catapult. However, buyers must keep Chainlink above a certain price threshold, or the pattern will be invalidated.

More ChainLink news

SafeMoon bulls look for a breakout to $0.0000024

SafeMoon price is one of the best performers of the day, with moves as high as 13% above the open. While the breakout above $0.0000019 is bullish, momentum must be maintained to push SafeMoon above the Cloud to create clear bullish ...

More SafeMoon news

Top 3 Price Prediction: Investors prepare to sell on ETF news

Bitcoin price has historically sold off during the opening of any new derivative futures contract. Will this behavior continue? Ethereum price struggles to cross above the critical $4,000 level and may be held back pending any Bitcoin weakness.

More Bitcoin news

Cardano price to tread water soon, breaking below $2

Cardano price sees bears pushing price action further to the downside. ADA price has tested $2, but with lower highs, Cardano price is getting squeezed lower. The pivotal level at $1.89 could make or break the uptrend. Cardano price has been trying to recover ...

More Cardano news


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast