XLM Bulls Face Headwinds as Volume Wanes

The Stellar price is attempting to rebound after dipping by more than 45% last week. The XLM price is at $0.5050, which is 33% above the lowest level last week. Stellar Lumens are now valued at more than $11.5 billion and is the 15th-largest digital currency in the world.

Stellar Lumens fundamental analysis

Stellar is a leading blockchain product that enables developers to build digital representations of cash. At its basic level, Stellar’s system is useful in tracking ownership. The network has what is known as the Stellar Consensus Protocol (SPC) which helps to check the work done by other computers. 

Stellar Lumens or XLM is the native currency of the network. In the past few years, more developers have been turning to Stellar to build. This has led to a substantial demand for the currency. There are more than 16,945 accounts and more than 2.95 million transactions that have happened in the past 24 hours. 

In addition to the strong demand, Stellar Lumens price has surged because of the overall performance of cryptocurrencies. In the past few months, most cryptocurrencies have all surged and XLM has plated a role in this rally.

Stellar Lumens price technical outlook

Turning to the daily chart, we see that the XLM price has been in an overall bullish trend. However, recently, this price has struggled, which has seen the price form an ascending channel that is shown in blue. The price has also moved back above the 50-day and 25-day exponential moving averages (EMA). 

Therefore, in my view, I suspect that the currency will attempt to move back to the upper side of the channel at $0.688. For this to happen, volume will need to increase and the price moves sharply above the two moving averages. Also, bulls will need to clear the psychological level of $0.55.

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XLM price chart

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