Stellar Lumens price has consolidated over the past week. The coin eased its monthly rally and has been trading sideways since then.
At the time of writing, the coin was down 5.56% to $ 0.3390. XLM’s total market cap is down more than 5% in the past 24 hours to $ 8 billion. The total volume traded in the last 24 hours increased 3.89% to $ 663 million. However, it is nearly 110% below its highest level in May when it hit $ 6 billion.
What is stellar?
Stellar is an open source blockchain payment system. It uses Lumens (XLM) as its native cryptocurrency. Stellar is the 20th most valuable digital asset between Internet Computer and Ethereum Classic.
It was co-founded in 2014 by Jed McCaleb, who previously owned Ripple. Stellar comes with a built-in decentralized exchange that can be used to trade any currency or asset. It enables its users to send any currency to anyone with a Stellar address anywhere in the world with no fees.
Unlike Bitcoin, Stellar doesn’t use a proof of work to maintain its blockchain. Stellar uses a federated Byzantine negotiation algorithm to validate transactions. XLM was created to bridge the gap between cryptocurrencies and fiat currencies.
Technical analysis of XLM
Stellar Lumens’ price was pegged in a range for the past seven days. XLM was trading between $ 0.3390 and $ 0.4000. According to most analysts, the coin is unlikely to surge above the $ 0.400 mark anytime soon.
On the daily chart, the digital currency is trading above the 50-day and below the 200-day moving average. it also trades above the 50-day exponential moving averages.
Hence, the XLM price will likely be subject to a retracement before recovering. Moving past the 200 DMA will cause the bulls to target this year’s high at $ 0.8. On the other hand, a move below the DMA of 50 will invalidate that outlook.
