Stellar Lumens Price Analysis: XLM Slides 8.9 Percent but Buyers are Still in Control
Today’s Stellar Lumens (XLM) News
When laying out the reasons why IBM will build the World Wire on the Stellar blockchain, Jesse Lund, the Vice President of IBM Blockchain, said it was because the modern technology is yet to optimize the way money is wired across the world. Adding that it was ridiculous that one would better FedEx funds instead of wiring them through a traditional payment system which charge a premium for service rendered.
Stellar, to him, is efficiency, simplicity and scalability. The World Wire, therefore, is what eliminates hoops. There, banks can launch bridges via stable coins, empowering the unbanked in a transparent manner. Within the Stellar network, the IBM creates a rival of Ripple, a real-time global payment system that is well-though out and not surprising work capable of working with national central banks willing to roll out national digital currencies on-top of the World Wire.
All the same, the problem is not Stellar’s verified speed, cost, efficiency or utility. It’s about their validators who are unfortunately heavily reliant on Stellar Development Foundation (SDF) nodes. In explaining their weaning and the resulting two-hour blackout on May-15, Jed McCaleb said:
“Over the last months we have worked to get people to not depend on the SDF nodes. As of maybe a month or so ago the SDF nodes could safely go down and the network would continue. But this also means that the network can halt even if the SDF nodes are still running. Unfortunately this is what happened. Enough other nodes stopped for various reasons that the network halted. The SDF nodes and in fact the majority of validators in the network were still up. They just couldn’t close ledgers safely because they weren’t hearing from enough nodes in their quorums so the network halted until it could be restored to a good state.”
XLM/USD Price Analysis
At press time, Stellar Lumens (XLM) is on a roll XLM -1.11. The coin is up 37 percent in the last week, adding 11.7 percent by yesterday’s close. However—and as expected, buyers of May-15 were not confirmed as volumes dropped and the closing bar ended up as a doji with equal buy and sell pressure.
Nonetheless, the fact that yesterday’s close was above 13 cents, the main resistance level capping bulls in the last five months, signals underlying demand for XLM traders. Notably though, accompanying the break above is a surge of transaction volumes—5 million against 1 million, meaning there was demand for the asset thereby fueling the propulsion above Q1 2019 highs.
Stellar (XLM) Live Price
1 XLM/USD =$0.3986 change ~ -1.11%
As such, typical of every breakout pattern, traders should fine tune their entries in lower time frames. That is despite today’s slump of 8.9 percent correcting the overvaluation of yesterday’s close above the upper BB. On every dip, traders should ramp up with first targets at 18 cents or Q2-2018 lows. Already, prices are reacting at the 78.6 percent of May-15-16 high low meaning bulls of May-15 are present and could propel XLM to above Q1 2019. Further upsides could see XLM soar to 30 cents as prices more than triple as the race to 45 cents pick up momentum.
However, losses below May-15 could spur further losses as XLM snap back to range-mode within Q1 2019 high low with floors at 8 cents.
All Charts Courtesy of Trading View—BitFinex
Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.