- Stellar (XLM) regains 10th position in the cryptocurrency market rating.
- The short-term recovery is limited by SMA200 on a daily chart.
Stellar (XLM) is changing hands at $0.0635, down 1.6% in recent 24 hours. The coin has regained the 10th position in the global cryptocurrency rating compiled by CoinMarketCap. Stellar’s market value surpassed $1 billion thresholds on January 14 and reached $1.2 billion on Tuesday. An average daily trading volume is registered at $570 million, which is twice as much as at the beginning of January.
Despite the decrease on a day-to-day basis, Stellar is still 27% higher on a weekly basis. The cryptocurrency experts believe that Stellar’s price increase has been supported by positive fundamental developments and the project ecosystem’s growth. Thus, Thai platform Lightnet, which is a part of Stellar’s infrastructure, raised $31 million to develop a payment infrastructure in South Asia. The team announced that the payment network would be able to process transactions worth $50 billion annually by 2023. The capital influx to the Stellar-related structure served as a bullish catalyst for the coin.
Meanwhile, Monero (XMR) has been less successful lately. The privacy coin got boosted at the end of December when Europol admitted that transactions with the coin can be hardly traced, especially when they processed in Tor browser.
XLM/USD: technical picture
XLM recovery is capped by SMA200 daily currently at $0.0658. The price touched this MA twice in recent days, but each time reversed to the downside. Once it is out of the way, the psychological barrier of $0.07 will come into focus, followed by the upper line of weekly Bollinger Band at $0.0760 an SMA50 weekly at $0.0840. A sustainable move above this MA will create a strong bullish momentum as XLM has been trading below since the end of 2018.
On the downside, the local support comes at $0.0600. This psychological barrier is reinforced by the middle line of the weekly Bollinger Band and SMA100 daily. Once it is broken, the sell-off is likely to gain traction with the next focus on $0.0500 (SMA50 daily) and $0.0430 ( the lower boundary of the previous consolidation channel).