XLM price was marginally higher in early trading on Tuesday, gaining 0.09% in 24 hours to trade at $0.3665. That was a significant reversal of yesterday’s losses of 1.86%, when it closed at $0.3662.
Stellar investors have not enjoyed as much profit as holders of most top 10 cryptocurrencies, despite the recent market rally. At the time of writing, XLM had only gained about 15% over the past 30 days and was down by about 5.4% compared to its position 7 days ago.
New improvement could help propel Stellar higher
Stellar Development Foundation is set to roll out an improvement on the Stellar network on November 3rd. Stellar says that the integration of Automated Money Maker (AMM) to the Stellar Protocol18 will enhance liquidity on the network. The Stellar community is set to vote on the improvement tomorrow. If it passes, the improvement is expected to enhance Stellar’s capability to take on established international remittance companies like Western Union and Moneygram.
The company has long viewed liquidity as a hindrance to its efforts to be on the same pedestal as the more established names in the sector. Besides increased liquidity pool, the improvement is designed to enhance efficiency in the network. It is geared to make transactions cheaper, simpler and faster. It may take some time for the benefits of this improvement to be reflected XLM’s price. However, this would probably be the best time to buy the asset and hold it over the long term.
Technical analysis for XLM price
XLM price has been on an uptrend over the past 5 days. Its momentum indicators show that the uptrend is likely to continue in the near term. The 10-EMA (green line) is above the 20-EMA. This signals that the buyers have recently been controlling the market. In addition, the RSI is currently at 52, having risen from 44 over the past 5 days.
If the buyers sustain the momentum, the price is likely to rise to the first resistance at $0.3719. If t breaches that point, the next resistance is likely to be encountered at $0.3878. However, if the momentum weakens, the XLM/USD pair could slide to 0.3563 for the first support, while the second support is likely to be t $0.3304.
