Back to the list

Stellar Price Analysis - XLM Surges After MoneyGram Takeover Rumour


coincodex.com 22 July 2021 13:01, UTC
Reading time: ~5 m

Key highlights:

  • Stellar 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

Stellar 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 in talks with MoneyGram about a potential takeover. The news was reported by Bloomberg. If a deal is reached, 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. 

In other news, the Liquid cryptocurrency exchange recently enabled support for the USD Coin stablecoin on the Stellar blockchain.

Stellar Lumens is now ranked in the 17th position with a market cap value of $5.78 billion.

Stellar 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).

XLM/BTC price analysis

What has been going on?

XLM also rebounded against BTC today. The cryptocurrency had dropped into support at 680 SAT this week, where it found the late March support. It rebounded from there on Tuesday and continued higher today from 700 SAT to break the 20-day MA at around 740 SAT and reach as high as 790 SAT.

We can see that XLM is now battling to break above a long-term falling trend line that was also established during May. A daily closing candle above here would signal that XLM is indeed ready to start recovering against BTC.

XLM/BTC short term prediction: Bullish

XLM Is also neutral against BTC. A drop beneath 680 SAT would turn the market bearish in the short term. On the other side, it would need to break above 900 SAT (200-day MA) to start to be considered bullish.

If the sellers push lower, the first support lies at 750 SAT. This is followed by 740 SAT (20-day MA), 700 SAT, and 682 SAT. 

Beneath this, additional support lies at 650 SAT, 625 SAT (downside 1.272 Fib Extension), 600 SAT (downside 1.414 Fib Extension), and 570 SAT (downside 1.618 Fib Extension).

Where is the resistance toward the upside?

On the other side, if the buyers can climb above the falling trend line, the first resistance lies at 810 SAT (50-day MA). This is followed by 850 SAT< 900 SAT (200-day MA & bearish .236 Fib) and 950 SAT (100-day MA).

Added resistance lies at 1000 SAT and 1030 SAT (bearish .382 Fib Retracement).

Back to the list