Stellar (XLM) Price Grew in Response to Company’s Actions
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
On Tuesday, November 5th, the XLM keeps growing, trading at $0.0811.
Looking at the XLM tech analysis data, in the long run, we will see the cryptocurrency still on its peak. However, on H4 there is an uptrend developing after a convergence on the MACD. For now, this growth should be understood as a correction in a descending phase. The aim of the correction is at the resistance level of the main channel — $0.1075. Further growth is also confirmed by a breakaway of the upper border of the short-term channel, which means the ascending dynamics are strengthening. The MACD is an additional confirmation of sustained growth. As the support, we may regard the lower line of the previous channel — $0.0675. A breakaway of this line will let the market decline further to $0.0350.
On H1, XLM/USD is declining, correcting the previous impulse of growth. The correctional decline has reached 50.0% Fibonacci. Then, we may expect a new impulse of growth to the current maximum at $0.0900, followed by growth to the psychologically important level of $0.0100. This idea is confirmed by the Stochastic lines directed upwards.
Stellar Development Foundation performed an action aimed at decreasing the emission level. The nonprofit organization destroyed 55 million XLM tokens, which helped support the quotations of the cryptocurrency remaining on the market. Currently, the overall volume of coins is estimated as 50 billion units, 20 billion of them being on the market.
In the company, they suppose that a smaller amount of coins will let carry out the necessary work more effectively while the required level of influence on the quotations should remain untouched.
The XLM tokens that remain at SDF will most probably be used for developing the blockchain and extending the partnership, as well as finding new areas of use of digital money. For this, the company is planning to double the number of employees by the end of the year.
The fact that SDF realizes the peculiarities of the cryptocurrency market and acts accordingly is a very good signal for the company. The crypto world does not appreciate endless emission volumes anymore, now flexibility and a new view on the things are important. Stellar has stepped on this road.
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