Stellar Lumens (XLM) has become a new-age competitor in the financial transaction domain. XLM has peaked, but the market scenario showcases a decreasing demand for disruptive technologies. Stellar focuses on reducing the time and resources required for cross-border or inter-currency transactions.
The Stellar protocol converts the native currency first into XLM and then into the requested currency. Problems arising from high transaction cost and longer wait time has allowed stellar to penetrate the huge market for financial transactions.
XLM showcases fundamental potential to reduce payment bottlenecks and allow swift payments. It currently stands at the 25th position with a market capitalization of $2.2 billion, while the token circulation remains just 51%.
Stellar (XLM) Price Analysis
Stellar showcases a downtrend pattern in the short term, with the support of $0.08 formed in November to sustain the selling pressure while avoiding further decline. Price action showcases a tough challenge for the token in the coming days, with an immediate need to break out from the $0.10 level.
Stellar has momentarily managed to overcome the short-term moving average of 100 days, but the price action shows support from its recent lows. Such a level was last reached in November 2021 before the positive breakout and followed retracement. The resistance of $0.13 became tough for XLM to breach and has now shifted to the lower price range of $0.10. The expected outcome from XLM in the coming days would be negative consolidation.
Technical indicator MACD showcases the upside potential for XLM as the bullish trends have begun. At the same time, RSI maintains a wait-and-watch projection as buying sentiment has tanked compared to previous months. The outlook for XLM will face severe backlash and rejection if the support level of $0.08 is breached, while the upside potential for Stellar Lumens could be strengthened if the resistance level of $0.10 or the 100 EMA is surpassed. Visit our XLM price prediction to get more details about the future of Stellar Lumens.
On weekly charts, the twin double-digit weekly declines in November have completely shattered the uptrend potential for the token. The resistance of $0.139 has been further strengthened in recent months as Stellar failed to surpass this psychological level. Even from the lows of May 2022, XLM has tanked a further 40% creating immense selling pressure on the token.
Source: https://www.cryptonewsz.com/stellar-creates-a-downward-flat-bottom-pattern-what-next/