The XLM price eased its rally at the start of August, albeit was treading in a bullish pattern. At the time of writing, its total market capitalization had increased 0.72% in 24 hours to $28.94 billion. This ranks it as the world’s 19th largest cryptocurrency.
XLM Price Action
The XLM price staged a major recovery in the last week of July. This was after rumors that Stellar Development Foundation was interested in acquiring MoneyGram. MoneyGram International Inc is an American money transfer company. This would push the Stellar Lumens price higher as it would expose it to a global audience.
The overall performance of cryptocurrencies has played a role in the advancement of Stellar Lumens price. Bitcoin’s jump to $42,000 boosted most cryptocurrencies. Vice versa, BTC’s decline from the $40,000 level saw a majority of the altcoins slump.
The US Senate’s $1 trillion bipartisan infrastructure bill seems to call for an increase in tax reporting for cryptocurrencies. According to the senate, the infrastructure bill would raise millions through the crypto tax crackdown. However, this might cause a slump in crypto prices.
The surging coronavirus cases continue supporting the coins’ prices as the Fed turns dovish. The struggling global economic recoveries have seen most central banks maintain their monetary policies. The Federal Reserve stated that it is in no hurry to hike its interest rates. This hints at a bullish XLM.
Stellar Lumens Technical Outlook
For the past two weeks, the XLM price has formed what looks like a double bottom at $0.1988. This is a bullish sign for the coin. The coin was up 1.31% at $0.2777 hitting an intraday low of $0.2650.
On the daily chart, it was trading above the 25-day exponential moving average (EMA). It was below the 50-day EMA at $0.2834.
A move above the 50-day moving average will confirm a bullish breakout. If this happens the next target will be the key level at $0.3000. On the flip side, a move below the support level at $0.2240 will break the bullish trajectory.