Tanya Abrosimova
Independent Analyst
- XLM is losing ground after strong growth at the beginning of the week.
- The support is seen on approach to $0.0670.
Stellar, the 10th largest digital asset with the current market value of $1.5 billion, has been all over the place recently. On November 5, the Stellar Development Foundation (SDF) burned 55 million XLM tokens worth of $4.6 billion. The team explained thee move by thee desire to make thee network more efficient. The coin skyrocketed by more than 20% on response
However, the strong upside momentum proved to be unsustainable as the coin partially reversed the gains. At the time of writing, XLM/USD is changing hands at $0.0752, down 7% on a day-on-day basis. Notably, XLM hit $0.0667 low on Wednesday and thus erased all the gains related by the burn.
XLM/USD, the technical picture
On the intraday charts, the critical support awaits us on approach to $0.0670. It is created by a confluence of SMA100 (Simple Moving Average) daily, the middle line of the daily Bollinger Band, and the lowest level of the previous day. Once it is out of the way, the sell-off is likely to gain traction with the next focus on $0.0650 (SMA50 daily) and $0.0570. This area limited the sell-off for the best part of October.
On the upside, we will need to see a sustainable move above $0.0800 for the upside to gain traction. This area is strengthened by the upper line of the Bollinger Band. The next resistance comes at $0.0830 (the Thursday's high) and $0.0890 (SMA200 daily).
XLM/USD, the daily chart
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
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.