Bitcoin
BTC$23 377.12

-4.18%

Ethereum
ETH$1 842.25

-5.57%

Tether
USDT$1.000068

0%

USD Coin
USDC$0.999915

-0.01%

Binance Coin
BNB$306.80

-4.80%

XRP
XRP$0.374134

-3.28%

Stellar trying to get out of the bear claws


January 2020

There is no denying the fact that Stellar (XLM) belongs to a cohort of the finest cryptocurrencies in terms of their fundamental value, especially in the area of cross-border financial transactions and the issuance of new crypto tokens. Some argue that Stellar is superior to Bitcoin and Ethereum with regard to transaction speed, fees, scalability (which is especially relevant to Ethereum, though the Istanbul hard fork is said to have eased the scalability problem), and the effectiveness of smart contracts.

However, the price of XLM, and any other cryptocurrency, for that matter, don’t depend solely on its fundamentals, or we would have absolutely different top coin rankings. Whereas blockchain and dApp developers may adore Stellar, traders, and especially holders, weren’t going into raptures over XLM’s performance during the previous year. The coin ended the twelve-month run on a negative note and showed nothing but losses on a yearly chart against the USD and the two dominant cryptocurrencies. This resulted in Stellar been pushed from the top 10 by Monero, with Tron stepping on its toes.   

To end the quick recap of Stellar’s previous activity, take a look at the 1-year chart which clearly shows that XLM had eagerly participated in the short-term bull run that allowed the coin to reach the 2019 high of $0.141, which is still 84.8% lower than its all-time high of $0.93.

The bears got hold of XLM slightly earlier than they did with regard to the rest of the crypto market as Lumens entered a textbook downtrend in mid-June, whereas the majority of other top cryptocurrencies remained in the green for around months and a half more. The market capitalization has been following the price action to the letter, having reduced from $2,6 billion at the peak of the 2019 uptrend, to the current $984 million.

All in all, Stellar didn’t manage to reverse the downtrend, which lingers since its golden days in January 2018. The current price, which appears to be testing the resistance at $0.05, has fallen down to the level of November 2017, the time that preceded its most powerful bull run as of yet. The question now is, will XLM bottom out in the next couple of weeks and finally start showing gains or will it continue the downslide.

Before getting down to charts and technical indicators, let’s see how Stellar does in other areas, which also might give a hint at its inclinations. The number of active addresses has been on the decline since May 2019 with periodic improvements.

There is currently a rapid almost four-fold increase in the number of transactions using XLM since the beginning of November 2019, which is undoubtedly a positive sign that indicates the usefulness, thus the popularity, of this cryptocurrency.

However, this also signifies the ambiguity in Stellar’s behavior, which is also depicted on the charts. On the 1-day chart in the XLM/USDT pair, we see that XLM had consolidated since December 17, 2019, until January 5, and then put up a big green candle, which tested the resistance at $0.05.

This period was also characterized by a visible boost in trading volume, though it is evident that the bears could regain the initiative and push the price back to $0.042. On the XLM/BTC chart, things look quite grim for the 11th cryptocurrency as there has been a considerable drop, which may continue, judging from the RSI showings. It might be a good pair to trade right now, given that you are willing to wait for the Stellar’s trend reversal.  

Back to the XLM/USDT pair, the RSI on the 12-hour chart shows that the coin had entered the overbought area and now seeks balance. The MACD oscillator also hints that after testing the new resistance, XLM will roll back to the previous support level.

To summarize, Stellar is likely to continue the consolidation for the next couple of weeks, if it fails to flip the $0.05 resistance into support. However, with no clear signs of a trend reversal, it might be better to monitor XLM without entering long positions.

Author: Alex Paulson for Crypto-Rating.com

Related

Stellar (XLM): The Crypto Winter Is Not Over Yet
Stellar (XLM): The Crypto Winter Is Not Over Yet
Stellar (XLM): Rolling Back to the March Price Levels
Stellar (XLM): Rolling Back to the March Price Levels
Stellar (XLM) Is the Reversal Already On?
Stellar (XLM) Is the Reversal Already On?
Stellar (XLM): Here Comes Resistance Again
Stellar (XLM): Here Comes Resistance Again
Stellar (XLM) Sends Conflicting Signals
Stellar (XLM) Sends Conflicting Signals
Stellar Might Awake With a Morning Star
Stellar Might Awake With a Morning Star
Stellar is Looking Down Into the Abyss
Stellar is Looking Down Into the Abyss
Stellar (XLM): Just Getting Out of the Slump
Stellar (XLM): Just Getting Out of the Slump
Stellar (XLM) Price Forecast for December 2019
Stellar (XLM) Price Forecast for December 2019

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 86% 13 $23 377.12 -4.18% -4.83% $447 075 937 480 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68.8% 57 $1 842.25 -5.57% -2.51% $224 771 545 069 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 91.2% 1 $1.000068 0% -0.03% $67 570 562 281 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 90.8% 1 $0.999915 -0.01% 0.01% $53 159 903 576 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 68% 64 $306.80 -4.80% -7.81% $49 498 485 536 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 92.4% 10 $0.374134 -3.28% -1.89% $18 473 812 799 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 93.6% 1 $1.000141 0.01% 0.02% $18 288 013 118 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 82.4% 30 $0.536096 -6.82% -1.61% $18 191 903 489 ADA 7 days price change
9 Solana (SOL) SOL Solana predictions 82.4% 33 $40.80 -8.29% -8.88% $14 232 149 113 SOL 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 82% 28 $0.081156 -7.02% 12.66% $10 767 081 650 DOGE 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 91.6% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 HEX (HEX) HEX HEX predictions 67.6% 66 $0.058867 -5.25% -5.51% $10 208 131 428 HEX 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 70% 54 $8.44 -7.64% -10.97% $9 351 379 972 DOT 7 days price change
14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 77.2% 45 $0.000015 -8.13% 18.92% $8 164 105 683 SHIB 7 days price change
15 Avalanche (AVAX) AVAX Avalanche predictions 71.2% 63 $25.73 -8.40% -14.00% $7 332 766 147 AVAX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2022 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.