- Stellar dips aggressively lower, dragged by an overall turn in sentiment in cryptocurrencies yesterday.
- The drop came after El Salvador rolled out Bitcoin as an approved payment method and reserve currency.
- Buyers can crunch numbers and look at entries for a long position.
Stellar (XLM) got dragged into the damaging flood caused by El Salvador that introduced Bitcoin as an approved payment method and reserve currency for the country. During the transition, a lot of issues occurred, and price action in Bitcoin got very choppy. This caused red lights flashing for investors and made them pull out their money short-term.
In the meantime, the dust is settling, and price action in XLM is looking for stable ground to build back up from.
Stellar looks like a good buy at $0.30 with the historical support from June 20
Yesterday, the break took out a few significant support levels that did not stand a chance against the massive selling volume. The most important ones were the descending red trend line, the 55-day Simple Moving Average (SMA) around $0.32 and the historical level at $0.30 that originates from June 20. With its six tests, a force to be reckoned with. But Stellar dipped toward $0.26, just a few cents shy of the S1 monthly support. Buyers stepped in and were able to run price action back up above $0.30. It was again showing the importance of this level, although it got broken yesterday. A side note needs to be made that probably on any typical trading day, $0.30 would hold and show support. On an extraordinary day like yesterday, however, it is pretty standard that these levels give way to the event at hand.
XLM/USD daily chart
Expect some calmness on Wednesday to return to the markets. Buyers and sellers will reassess the situation, and buyers will see the opportunity to buy at $0.30 and higher up. Expect a return toward $0.34 in the coming days, and by next week Stellar could be retesting $0.41, having pared back the incurred losses from yesterday almost in full.
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.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.