The price of Stellar Lumens wiped out most of last week’s gains as the sell-off in cryptocurrencies accelerated. The XLM was down more than 5% to $ 0.3118, down about 26% from this week’s high. Total market capitalization dropped to more than $ 7.5 billion, making it the 25th largest cryptocurrency in the world.
Why XLM refused
The Stellar price fell on Monday mainly due to the fluctuating sentiment in the cryptocurrency industry. In fact, the price of most cryptocurrencies has fallen in the past few days. For example, Bitcoin, the world, has fallen more than $ 6,000 in the past few days.
Similarly, the total market capitalization of all cryptocurrencies tracked by CoinMarketCap has dropped to around $ 2 trillion. Therefore, the drop in XLM price is not due to challenges within Stellar’s ecosystem.
In fact, data shows that the number of unique assets that exist in Stellar’s ecosystem has grown to more than 38,260 in the past few days. At the same time, the total number of all on-chain trades in XLM has grown to more than 7.884 billion. The only worrying number is that the total number of newly created assets has dropped sharply, as shown below.
Stellar’s price momentum has slowed significantly in recent weeks due to the silence regarding MoneyGram.
The XLM price soared in July after reputable media outlets suggested the Stellar Foundation was in talks to acquire MoneyGram, one of the largest cross-border payment companies in the world. The companies involved, such as MoneyGram and Stellar Foundation, have neither confirmed nor denied the reports. Hence, interest in cryptocurrencies has fallen as investors wait for additional reports.
Star price forecast
The daily chart shows that the price of Stellar Lumens fell to a low of $ 0.1937 in July. It then rebounded as part of the entire cryptocurrency rally and after the MoneyGram rumors surfaced. Along the way, the coin formed an inverted head and shoulders pattern, which is a bullish sign. It moved slightly below the neckline of this pattern at $ 0.4484 over the weekend and then went down. This price was also along the 50% Fibonacci retracement level.
Therefore, despite the current weakness, there is a likelihood that XLM price will recover later this week. This view will be confirmed if it manages to break above the key resistance at $ 0.400.