For the past few weeks, the Stellar price has been in a struggle to recover. The XLM coin is trading 1.43% higher at $0.3963, which is more than 50% below its highest level this year in May. The coin has jumped more than 31.57% in the last seven days. It has a total market capitalization of $9.39 billion. It ranks as the 18th largest cryptocurrency after Ethereum Classic.
Stellar Lumens Analysis
Stellar is an open source blockchain payment system. Unlike other major digital currencies like Bitcoin and Ethereum, Stellar is not a currency. Stellar’s goal is to bridge the gap between cryptocurrencies and fiat currencies. It allows its users to send different currencies to anyone with a Stellar address anywhere in the world, with zero fees.
The XLM price has been in the limelight since the start of August on acquisition rumors. The Stellar Development Foundation has been in talks for acquiring MoneyGram. MoneyGram is among the leading players in remittance. The firm was started in 1945 and has skyrocketed ever since. If the deal goes through, the firm will be acquired for more than $1.3 billion.
This will record the biggest acquisition by a cryptocurrency company. If this happens, there will be a possibility that the Stellar price will bounce back. MoneyGram’s global network will enable the firm to expand its business.
The XLM price will react to the overall performance of Bitcoin and other altcoins. As such, if the Bitcoin price rises, XLM will also keep rising.
XLM Technical Outlook
On the four-hour chart, the Stellar price has been on an uptrend. Along the way, it has formed a double bottom pattern. It hit an intraday high at $0.4100 before reversing.
It is trading above the 25 and 50-day exponential moving averages, bolstering its bullish outlook. Its Relative Strength Index (RSI) has been higher. However, at 77.69, it is 7 points in the overbought region, signaling an imminent sell-off period ahead.
Bulls need to gather momentum to push the prices past the $0.4000 level. However, a move below the major support level at $0.36500 will invalidate the bearish view.