Stellar Lumen (XLM) Price Accelerated Losses as Bears Take Control
Stellar Lumen (XLM) is a decentralized payment platform that is powered by its native digital currency called lumens. The platform enables fast and cheap cross-border payments, making it a popular choice for individuals and businesses alike. However, the cryptocurrency market has been in a slump lately, with many digital assets losing their value due to various factors. Stellar Lumen (XLM) was no exception and recently experienced a decline in its price.
Stellar Lumen (XLM) Price Analysis (XLM to USD)
After attempting to break the $0.090 resistance zone, the Stellar Lumen (XLM) price started a fresh decline against the US Dollar. The XLM/USD pair traded below the $0.0865 support to move into a bearish zone. There was a steady decline below the $0.0850 level and the 55 simple moving average (4-hours). The price even tested the $0.0820 level. A low is formed near $0.0818, and the price is now consolidating its losses.
Currently, the XLM price is trading below $0.085 and the 55 simple moving average (4-hours). On the upside, the price is facing resistance near the $0.084 level. There is also a key bearish trend line forming with resistance near $0.0840 on the 4-hours chart. The next major resistance is near the $0.0855 zone, which is near the 23.6% Fib retracement level of the downward move from the $0.0978 swing high to $0.0818 low. The first major resistance is near the $0.0865 level and the 55 simple moving average (4-hours).
A clear upside break above the $0.0865 zone might send the price towards $0.0900. Any more gains could lead the price towards the $0.1000 level or even $0.1020. However, a clear move below the $0.0820 support may trigger a major decline in the Stellar Lumen (XLM) price. In this scenario, the price could go towards the $0.080 level or even retest $0.0750.
Technical Indicators
The 4-hour MACD for XLM/USD is gaining momentum in the bearish zone. The RSI for XLM/USD is now below the 50 level. Key support levels are at $0.0820 and $0.080, while key resistance levels are at $0.0840, $0.0850, and $0.0880.
The Stellar Lumen (XLM) price chart indicates that the price could start a major decline if it doesn’t stay above the $0.0820 support. Overall, the cryptocurrency market remains turbulent, and investors must monitor the technical indicators and market trends carefully to make sound investment decisions.
Factors Affecting Stellar Lumen (XLM) Price
The cryptocurrency market is volatile and can be affected by various factors, such as global economic conditions, government regulations, and investor sentiment. The Stellar Lumen (XLM) price was no exception, and the recent decline in its value may be attributed to several factors, including:
1. Market correction: The cryptocurrency market experienced a significant bull run earlier this year, but in recent months, it has cooled down, and many digital assets have lost their value.
2. Competition: Stellar is not the only payment platform that utilizes blockchain technology. Other platforms like Ripple, Litecoin, and Bitcoin Cash also provide similar services, creating competition that can affect Stellar Lumen (XLM) price.
3. Regulations: Government regulations can affect the Stellar Lumen (XLM) price. Recently, the Chinese government tightened its restrictions on cryptocurrency trading, causing a market decline.
4. Adoption: Stellar’s success depends on its adoption by individuals and businesses. If it fails to attract users, it may negatively affect the Stellar Lumen (XLM) price.
Conclusion
The cryptocurrency market is unpredictable, and prices can fluctuate rapidly. Investors must make informed decisions based on market trends and technical indicators. The Stellar Lumen (XLM) price recently experienced losses as bears took control, but the platform’s potential remains strong. Investors must analyze the factors affecting the asset’s price and assess its long-term value before making any investment decisions.
