Stellar (XLM) Keeps Declining
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On November 19th, the XLM keeps decreasing in price, generally trading at $0.0657.
On D1, the XLM/USD quotations have broken out the resistance line of the long-term channel. The breakout was quite confident but now the prices are forming an impulse of decline to the local support near $0.0626. A breakout of this level may let the quotations fall to $0.0440. The resistance is near $0.0875. Further decline is confirmed by a Black Cross forming on the MACD.
On H4, the downtrend can be seen in more detail, and the channel looks rather stable. However, the scenario with a bounce off the target support level should not be ignored. On the Stochastic, the lines have entered the oversold area, which might mean upcoming correctional growth to the local resistance at $0.0720. However, the growth needs to be confirmed by a Gold Cross on the oscillator.
50 million of XLM coins were transferred to the Kraken exchange. It was evaluated as $3.6 million, and the price of the Stellar token declined immediately.
It is known that the coins were transferred by Stellar Development Foundation (SDF). The reason for the sale is unknown but it might be normal market interests.
One more reason for the XLM to fall might have become the completion of the airdrop process sized $120 million. During it, the participants received 500 tokens averagely, each costing $35 at that moment. The coins were transferred to the participants’ wallets. It would be logical to suppose that the users started selling those coins, which actions could pull down the XLM quotations.
All in all, the XLM volatility remains high in November. First, the SDF exterminated more than half of the emission of its tokens, which was $4 billion. After that, the exchange rate started growing but the trend turned out unstable.
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
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Dmitriy Gurkovskiy, Khareem Sudlow
