Stellar heads towards the $0.09 support; Is XLM in trouble?

XLM was the brainchild of a peer-to-peer network under works since 2014 that officially launched its services to individuals in 2015. XLM, otherwise called Lumens, acts as an immediate payment currency for using the operations system of Stellar. Since they are more inclined towards providing their services to individuals, allowing them to transfer money around the globe to any wallet with a Stellar address at a very low cost.

To tackle the security, XLM demands its users to hold at least one XLM token to maintain the activity. Moreover, it aptly defends the users of the Stellar network from flood attacks by making microtransactions more expensive. This intelligent step makes hacking a loss-making process for hackers, which has been a critical component of the uncompromised security of Stellar.

Since the crash of May 2022, XLM has ventured into a narrow territory of profit booking and consolidation movement. The intra-monthly volatility has been limited and is very low considering a highly unstable trading asset like cryptocurrencies. XLM poses a sincere challenge to the market dominance of XRP, with the sole difference between the target audience of these individual crypto blockchains.

XLM price action has not been quite active since the bear season started in May 2022. The outlook for this token is not as bright as XRP. XLM has repeatedly faced profit booking from the 100 EMA curve, which has once again been repeated this week.

Combining all the movements, the price outlook for XLM seems highly negative or one with very little opportunity for an uptrend. The current consolidation is active between $0.09 to $0.13, with positive movements limited to rare occasions. Despite the wholesome negative stance, XLM is making significant attempts to move upwards, and the 200 EMA curve would be the next target for buyers.

The technical indicators are showcasing a negative stance, with RSI trading under 45 and MACD failing to mark a bullish crossover. The possibilities for XLM on daily charts are hanging by a thread, and there can be a cascading profit booking at any instance. Read our Stellar price prediction to know the expected performance of the token till 2030.

Weekly price action for the XLM token has showcased a resistive movement of $0.13. The movements are so similar to that of a daily candlestick pattern that even the support and resistance lines tally with each other.

Now, if the daily and weekly movement pattern of a cryptocurrency is similar, the change in outlook would require a higher momentum. XLM will have to clear the resistance level of $0.13 to create a bullish buying scenario for the longer duration.