The Stellar price is in freefall as demand for Lumens decline. The XLM is trading at $0.2410, which is about 18% below the highest level this week. That decline has brought its total market value to more than $5.8 billion, making it the 21st biggest cryptocurrency. At its peak, Stellar was in the top ten of the biggest cryptocurrencies in the world.
Stellar growth. Stellar is a unique blockchain project that was developed by one of the co-founders of Ripple. In fact, some market participants wrongly believe that Stellar was a hard fork of Ripple. The network enables people to create, send, and trade digital representatives of all currencies. For example, using Stellar, one can easily send money across the border. Indeed, the project has processed more than 450 million operations by more than 4 million in the past few years.
The Stellar Foundation reported that it was bringing automated market makers to the network. The AMM product will help to bring more liquidity into Stellar’s network. This liquidity will be measured by its depth (the units available) and its width, which is measured by the spread between buying and selling prices. When introduced, it will help to replace the current situation that is known as order books. So, what next for the Stellar price?
Stellar price forecast
The daily chart shows that the XLM price has struggled lately. The coin declined below $0.4420 on May 20th. This was a notable price since it was along the lower line of the blue ascending channel. It has dropped by more than 45% since then.
The coin has also dropped below the 50-day EMA and the 28-day VWMA. The MACD is also below the neutral level. The Stellar price is also slightly below the upper side of the descending channel shown in yellow.
Therefore, the coin will likely keep falling as bears target the lower side of this channel at $0.200. On the other hand, a move above the upper side of the channel at $0.300 will invalidate this trend.
Don’t miss a beat! Follow us on Telegram and Twitter.
XLM price chart
Follow Crispus on Twitter.