Stellar Lumens price is bouncing back today after dropping to $0.3030 yesterday. The XLM price is currently trading at $0.3318, which is in the same range it has been in the past few days. It has dropped by 14% in the past seven days bringing its total market cap to more than $5.43 billion. It is now the 12th biggest digital currency in the world.
What happened: The recent price action of the Stellar Lumens price is mostly because of the overall weakness of the cryptocurrency industry. In fact, in the past seven days, currencies like Bitcoin, ETH, and Polkadot has dropped by more than 5%.
The currencies have fallen partly because of profit-taking by many retail investors. Also, there are questions about whether there is enough institutional support to continue supporting these currencies. Today, the better performance is partly because the Federal Reserve warned that the US recovery will likely slow, meaning that rates will remain lower for longer.
Stellar Lumens price prediction
A look at the daily chart shows that the Stellar price rose to $0.4386 this month and then declined to $0.22. The price seems to be forming a consolidation pattern around the support at $0.225.
Therefore, a clear break below this support will see it continue falling since it will be a vindication for the bears. However, if it manages to move above $0.40, it will mean that there are still more buyers in the market. As such, it will likely retest the previous high of $0.4386 and possibly continue rising.
Correction. An earlier version of this article used the wrong chart.
Stellar price chart