The Stellar price is in a tight range as investors wait for a catalyst in the crypto universe. The XLM is trading at $0.2600, which is about 10% below the highest level this week. The coin has a market capitalization of more than $6 billion and is the 18th biggest cryptocurrency in the world. At its peak, XLM was in the top ten of the biggest digital coins in the world.
Stellar mirrors Bitcoin. Most cryptocurrencies have had a similar price action this week. They started the week positively as Bitcoin moved from below $30,000 to more than $35,000. The coins then started fading as the price of Bitcoin declined to below $33,000. This performance is mostly because investors are still worried about the ongoing crackdown in China.
Another most visible reason is that demand for digital currencies has dried up recently. For example, data compiled by CoinMarketCap shows that the total volume of XLM traded on July 1 was worth more than $371 million. In contrast, the volume was more than $1.5 billion in the same day a month earlier. So, what next for XLM?
Stellar lumens price prediction
The Stellar price has dropped in the past two consecutive months because of regulatory and monetary policy concerns. That has seen it decline by more than 66% from its highest level this year. Turning to the monthly chart, we see that this decline started happening after the coin approached its all-time high of $0.9121.
We also see that the coin has formed what looks like a cup and handle pattern. This pattern is usually a sign of a bullish continuation. Therefore, there is a possibility that the coin will soon bounce back and move about its all-time high. On the flip side, a move below $0.1677 will invalidate this trend.
XLM price chart
Follow Crispus on Twitter.