Warning as XLM Forms a Dangerous Pattern
The Stellar price has collapsed lately. XLM, the native token for the ecosystem, is trading at $0.2542, which is close to its lowest in July last year. It has crashed by over 68% from its lowest level in 2021. Its market capitalization has crashed to about $6.4 billion, making it the 31st biggest cryptocurrency in the world. At its peak, it was among the top ten of the biggest coin in the world.
Stellar is a leading blockchain platform that is in the money transfer sub-sector. It does that by enabling people to create, send, and trade digital representatives of money. Through its network, one can create a digital representation of fiat currencies like the US dollar and the euro. One can even create representations of Bitcoin and Litecoin.
To achieve this, Stellar has partnered with some of the biggest financial services companies in the world. For example, it has partnered with MoneyGram, one of the biggest money transfer firms in the world. It has low transaction costs and fast speeds. For example, it has an average transaction cost of about $0.00001761 and transactions are completed within less than 5 seconds.
Today, people can send the USD Coin stablecoin and withdraw it in its branches. It has also partnered with companies like Circle, SatoshiPay, ClickPesa, Von Der Heydt, Tala, and CoinQvest among others.
Like other cryptocurrencies, the Stellar price has struggled in the past few months as worries about its growth and high interest rates remain.
Stellar price prediction
The daily chart shows that the XLM price has been under intense pressure in the past few months. A closer look shows that the coin has struggled moving below the key support level at $0.2550. It has failed moving below this level several times since September. A closer look shows that the coin has formed a small head and shoulders pattern. In technical analysis, this pattern is usually a bearish sign.
Therefore, there is a likelihood that the Stellar price will have a bearish breakout in the near term. If this happens, the next key level to watch wil be at $0.20, which is about 20% below the current level. On the flip side, a move above the resistance at $0.300.
