| Yaz Sheikh

Key highlights:

  • Stellar saw a massive 55.5% price explosion today as the cryptocurrency hits the current $0.268 level.
  • Stellar is now up by a whopping 106% over the past week of trading and managed to reach as high as $0.294 today.
  • Against Bitcoin, XLM managed to rebound from the 400 SAT level at the start of January and went on to reach as high as 800 SAT.
Stellar price $0.285
Key XLM resistance levels $0.284, $0.3, $0.32, $0.332, $0.34
Key XLM support levels $0.26, $0.246, $0.221, $0.20, $0.181

*Price at the time of writing

XLM saw a massive 55.5% price hike today after surging 106% over the week. The cryptocurrency started the year off by rebounding from $0.12 as it started to climb higher. It quickly went on to break above the December highs around $0.23 and continued to surge until reaching as high as $0.294 (bearish .618 Fib Retracement) today.

The cryptocurrency started to surge this week after one of Ukraine’s Deputy Ministers announced a partnership for the ministry of Digital Transformation and the Stellar Development Foundation to work on a strategy for virtual assets in Ukraine.

The Memorandum of Understanding states that the two entities will work together to develop a modern virtual asset market infrastructure to bring Ukraine’s status as a digital currency hub higher.

It is expected that the Stellar Development Foundation will also help the Ukraine government issue a CBDC on the Stellar blockchain itself. 

To find out more about this story, take a look at this article.

In other news, one of Europe’s oldest banks, Bankhaus von der Heydt (BVDH), announced that they would be issuing a Europ stablecoin (EURB) on the Stellar Network – creating the first Euro stablecoin backed by a bank.

These two latest fundamental factors show that institutions are not afraid to continue using XLM in light of the recent lawsuit against XRP.

Stellar Lumens is now ranked in the 9th position with a market cap value of $6.12 billion – overtaking LINK.

Stellar Coin Price Analysis

What has been going on?

Taking a look at the daily chart above, we can see that XLM was slowly grinding lower in December. By the end of the month, the coin had found support at the 100-day EMA at around $0.13.

In January 2021, XLM continued to close each daily candle above the 100-day EMA. It briefly spiked beneath the $0.12 level, but the bulls quickly started to regroup and push XLM higher from the 100-day EMA.

Today, the 55% price surge allowed XLM to push higher and break the November 2020 highs around $0.23. XLM managed to spike as high as $0.294, which is resistance provided by a bearish .618 Fibonacci Retracement level.

Stellar price short term prediction: Bullish

XLM is now considered bullish after it broke beyond the November 2020 highs. It is currently trading at highs that have not been seen since September 2018. The coin would need to drop beneath $0.2 to turn neutral and further beneath $0.14 to be in danger of turning bearish again.

If the sellers do push lower, the first level of support lies at $0.26. This is followed by support at $0.246 (.236 Fib), $0.221 (.382 Fib), $0.2 (.5 Fib), and $0.181 (.618 Fib).

Where Is The Resistance Toward The Upside?

On the other side, the first level of resistance lies at $0.294 (bearish .618 Fib Retracement). Beyond $0.3, additional resistance lies at $0.32, $0.332 (1.272 Fib Extension), $0.34, and $0.356 (1.414 Fib Extension).

Additional resistance then lies at $0.367 (bearish .786 Fib), $0.38, $0.39 (1.618 Fib Extension), and $0.411 (bearish .886 Fib Retracement).

What Are The Technical Indicators Showing?

The Stochastic RSI recently produced a strong bullish crossover that helped to push the market higher.

What has been going on?

Against Bitcoin, XLM dropped from above 1200 SAT in November 2020 to reach as low as 400 SAT at the start of 2021. This is now the lowest that XLM has traded at in over 3 years. Luckily, the buyers managed to defend the support at 400 SAT at the start of January and started to reverse.

After reversing, XLM pushed higher to meet the resistance at 822 SAT today, provided by a bearish .5 Fibonacci Retracement level. In doing so, XLM managed to break beyond the 100-day and 200-day EMA levels at around 700 SAT and 750 SAT.

Stellar price short term prediction: Neutral

XLM is still considered neutral against Bitcoin. The cryptocurrency would need to rise and break beyond 1200 SAT to be able to turn bullish again. On the other side, it would need to break back beneath 500 SAT to turn bearish.

If the sellers push lower, the first level of support lies at 750 (200-day EMA). This is followed by support at 700 SAT (100-day EMA), 642 SAT (.382 Fib), 588 SAT (.5 Fib), and 534 SAT (.618 Fib).

Where Is The Resistance Toward The Upside?

On the other side, the first level of resistance lies at 822 SAT (bearish .5 Fib Retracement). This is followed by resistance at 900 SAT, 931 SAT (bearish .618 Fib), 1010 SAT (1.414 Fib Extension), 1090 SAT (bearish .786 Fib), and 1166 SAT (bearish .5 Fib Retracement).

Added resistance is found at 1200 SAT, 1300 SAT, and 1356 SAT (bearish .618 Fib).

Back link Stellar Price Analysis – XLM Surges Over 100% This Week After Ukraine Government Announcement – $0.4 Soon? | CoinCodex https://cloudtokenplus.com https://cloudtokenplus.com

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