XLM/USD hovers under $0.2500, waiting for new stablecoin to be issued on Stellar platform

Stellar (XLM), the sixth largest coin with the market value $4.55B is trading close to $0.2470 handle, off Tuesday's high at $0.2520. The coin is down nearly 1% on a day-on-day basis amid directionless trading and low trading activity. The average daily volume slipped to $36M, which is in line with the recent figures.

What’s going on 

An Australian online payments processor Novatti Group is about to issue AUD-based stablecoin on Stellar blockchain targeted for consumer and business uses. 

The token will be backed by Australian Dollar 1-for-1, while the collateral will be held in a trust. The company broke the news at Money 20/20 conference in Las Vegas. 

Peter Cook, Novatti's managing director,  told in the interview with CoinDesk: 

"We think that people will use them [stablecoins] to help purchase goods from Australian enterprises. And we think that will also use them for the payment of bills or for services inside of Australia."

Stellar’s technical analysis

XLM/USD is currently capped by $0.2500 resistance, strengthened by SMA100 (1-hour). Once it is cleared, the coin will move towards $0.2615 (50.0% Fibo retracement level for the upside movement from June 28 low at $0.1713).On the downside, the closest support is created by $0.2450 (SMA200, 1-hour) followed by $0.2400 (psychological level, and 61.8% Fibo) Once it is cleared, the sell-off may be extended towards $0.2334 October 3 low).