The Stellar Lumens price has been consolidating for the past week. The coin eased its month-rally and has been trading sideways ever since.
At the time of writing, the coin inched 5.56% lower to $0.3390. XLM’s total market capitalization has declined more than 5% in the last 24 hours to $8 billion. Its total volume traded in the last 24 hours has advanced 3.89% to $663 million. However, it is nearly 110% below its highest point this year in May when it hit $6 billion.
What Is Stellar?
Stellar is an open-source blockchain payment system. It uses Lumens (XLM) as its native cryptocurrency. Stellar is the 20th most valuable digital asset, sandwiched between Internet Computer and Ethereum Classic.
It was co-founded in 2014 by Jed McCaleb who previously owned Ripple. Stellar is equipped with a built-in decentralized exchange that can be used to trade any currency or asset. It allows its users to send any currency to anyone with a Stellar address anywhere in the world without any fees.
Unlike Bitcoin, Stellar does not use Proof of Work to maintain its blockchain. Stellar uses a federated byzantine agreement algorithm to validate transactions. XLM was created to bridge the gap between cryptocurrencies and fiat currencies.
XLM Technical Analysis
The Stellar Lumens price has been range-bound for the past seven days. XLM has been trading between $0.3390 and $0.4000. According to most analysts, the coin is not likely to sway past the $0.400 level soon.
On the daily chart, the digital currency is trading above the 50-day and below the 200-day moving averages. it is also trading above the 50-day exponential moving averages.
Therefore, the XLM price is likely to face a retracement before bouncing back. A move past the 200 DMA will have the bulls targeting this year’s highest level at $0.8. On the flip side, a move below the 50 DMA will invalidate this outlook.