Stellar Lumens (XLM) Technical Analysis (June 12, 2018)
While Stellar Lumens is down 13 percent in the last week, prices have been fairly stable in the last 24 hours. In lower time frames, Lumens prices might be in a short covering phase with price appreciation backed by light volumes. But, that’s not what we are looking for because our trading advice should always be supported by moves in the daily chart. So, since our trading strategy is still valid, we shall wait for either of our triggers to be hit today or in the next few days.
From the News
The true measure of value is clearly seen in Stellar Lumens (XLM). Its native coin, Lumens remains stable despite rare updates about development from official Stellar platform channels. At the moment though, the only strong news that might spur movement or even support Lumens prices as sellers step up is news of Thailand’s SEC announcement that Stellar Lumens and other six cryptocurrencies are legal in that jurisdiction. According to the regulator, these coins are above the cut when it comes to liquidity and credibility, the two criteria used during coin selection and subsequent approval.
What this means is that investors would be able to settle ICO tokens using Stellar Lumens while licensed exchanges can derive trade pairs from these seven legal coins. This change of attitude by the country’s regulator comes after months of discussions and a final order that all digital assets within Thailand would be regulated by the SEC.
In a move to curb uncontrolled or hysteria investment, the SEC directed that only high net worth investors and institutions are the only ones who can make unlimited investments. To prevent speculations, retail investors would only make a limited investment in any ICO of up-to 5 million Baht. That’s equivalent to $9,400 in current spot rate.
At the same time, exchanges and other market participants would be required to apply for new licenses. The deadline has been placed at August this year and as per the directive, this should be adequate time for them to align themselves with the law lest they attract a penalty of 500,000 Baht or a two-year jail or both.
Stellar Lumens (XLM) Technical Analysis
Plainly put, Stellar Lumens prices are moving within a huge consolidation held within 50 cents and 20 cents. The former is the main resistance line while 20 cents is the intermittent support line and April 2018 lows. It can’t be clearer than that especially if we view our analysis from this time frame. We should note that before last week, we were net bullish albeit Lumens trending in a deep bear move thanks to week ending June 3 bull candlestick.
Now, last week crashed our minor support at 25 cents meaning our potential short-term bear target is 20 cents or there about. However, like everything else, this is subject to lower time frame events that could help push prices lower.
Overly, if we draw a simple trend line between recent highs then we can easily see that sellers are in charge. It shouldn’t be hard to figure that out and as trading dictates, trading with the trend can be the easiest way of turning a profit. As it is, our buy projections coming to pass are slim and depends on Stellar Lumens supporters trading according to yesterday’s bull candlestick and rejecting depreciation past 25 cents. On the flip side, any form of sells below this minor support-at 25 cents and we should be open to 20 cents in the next few days.