- Stellar Lumens surged by a strong 12% today as it surges to $0.25.
- The push higher allowed XLM to climb above the 20-day MA and break a long-term falling trend line.
- Against Bitcoin, XLM also pushed higher to 774 SAT and is back above the 20-day MA for the first time since May.
XLM surged a strong 12% today after rebounding from support at $0.2 earlier in the week. The push higher has allowed XLM to break a falling resistance trend line that was established at the end of May. It also allowed XLM to break back above the 20-day MA for the first time since mid-May (providing today’s candle closes around $0.25.
The surge occurred after the news circulated that the Stellar Foundation is planning on executing a takeover of MoneyGram. The acquisition was reported by Bloomberg, and it states that the money transmitter business would be bought by The Stellar Foundation in a partnership with Advent International.
MoneyGram, established in 1940, previously had an investment from Ripple after they acquired around 10% from a $50 million investment. However, the partnership was dissolved after the US SEC launched litigation against Ripple.
Stellar Lumens is now ranked in the 17th position with a market cap value of $5.78 billion.
Stellar Coin Price Analysis
What has been going on?
Taking a look at the daily chart above, we can see that XLM dropped beneath the 200-day MA at the start of June and established a solid downtrend from there. It had previously dropped from above $0.75 to reach $0.35 during the mid-May market capitulation that the entire industry experienced.
XLM dropped as low as $0.2 during June and rebounded from there toward the end of the month. However, it was unable to overcome the 20-day MA and continued to drop lower in the first half of July.
During this week’s BTC price drop beneath $30K, XLM fell lower to $0.2. However, the daily candles did not close beneath $0.212, where it found support at a .786 Fib Retracement level.
XLM rebounded from $0.212 yesterday and the 12% price hike today allowed XLM to break above a long-term falling trend line that was established toward the end of May. Additionally, XLM also managed to break above the 20-day MA. If today’s candle can close above the 20-day MA, this would be the first candle closing above it since mid-May, before the market capitulation.
Stellar price short term prediction: NEUTRAL
XLM is neutral right now, but a drop beneath $0.2 would certainly turn the market bearish. On the other side, it would possibly have to rise above $0.4 (200-day MA) to be considered bullish in the short term. However, a break above $0.3 would signal the first move of a short-term bullish rebound.
Looking ahead, the first support lies at $0.24 (20-day MA). This is followed by $0.212 (.786 Fib Retracement) and $0.2.
If the bears continue to drive XLM beneath $0.2, added support lies at 40.176 (downside 1.272 Fib Extension), $0.163 (downside 1.414 Fib Extension), $0.15, and $0.144 (downside 1.618 Fib Extnesion).
Where Is The Resistance Toward The Upside?
On the other side, the first resistance lies at $0.25. This is followed by $0.28, the 50-day MA, $0.285, and $0.3.
Beyond $0.3, additional resistance is expected at $0.339 (bearish .236 Fib Retracement), $0.35, $0.4 (200-day MA & 100-day MA), and $0.426 (bearish .382 Fib Retracement).