Stellar Lumens price has had a tough performance this week as its correlation with other cryptocurrencies continued. The XLM token rose to a high of $0.1065, which was higher than this week’s low of $0.0988. The price is about 22% below its highest level in August of this year, giving it a market cap of more than $2.6 billion.
There were two main catalysts for Stellar Lumens price this week. First, like other cryptocurrencies, it crashed as global volatility rose, pushing the US dollar index to a 2-decade high. The Japanese yen crashed to almost 150 while the British pound fell to the lowest point since 1985. At the same time, the VIX index rose while the fear and greed index retreated to the fear zone. As a result, the prices of most cryptocurrencies dropped and pulled down their market cap below $1 trillion.
Second, Stellar Lumens price crashed after Binance stopped its support of the USD Coin stablecoin. Instead, the company said that it will convert the existing USDC coins into its own Binance USD. This was a notable thing since Binance is the biggest exchange in the world. Also, Circle, the developer of USDC, used Stellar’s technology to build the stablecoin.
Stellar Lumens price prediction
A close look at the XLM price shows that it has been in a strong bearish trend in the past few months. As a result, the coin found a strong support at $0.0998. It has failed to move below this support two times since July. Stellar price has moved slightly above the 25-day and 50-day exponential moving averages while the MACD histogram has moved above the neutral point.
A close look shows that the coin has formed a head and shoulders pattern, which is usually a bearish sign. Therefore, there is a likelihood that Stellar Lumens will continue falling as sellers target the next key support level at $0.0090. A move above the resistance point at $0.11 will invalidate the bearish view.