The value of Bitcoin has hit $56k while the altcoin market has also seemed to been trading at its peak. With a market capitalization of $11.18 billion, Stellar [XLM] has been trading at $0.4925.
The digital asset has been pushed down to the eleventh position on the CoinMarketCap list, however, it has remained in sync with the prominent trends mirrored in the altcoin market.
Stellar six-hour chart
Source: XLMUSD on TradingView
The above chart of Stellar highlighted the coin’s rather slow growth. The price of the digital asset picked up from the lows of $0.276 and $0.3126 beginning February and approached close to the $0.8963 peak. As it hit resistance at $0.5805, the value dropped and currently was moving sideways between $0.5805 and $0.4734.
As the current trend continues we may see the value of XLM continue to consolidate.
Reasoning
The current trend in the XLM market was bullish and it was hinting that the market has acquired a sense of stability in terms of price. This was due to the correction witnessed in the market over the past couple of days.
The Bollinger Bands that were indicating high volatility when the rally was going on, had converged. This convergence was the sign of the price moving within a small range. Meanwhile, the signal line has been moving intertwined with the candlesticks, noting the market was trying to remain bullish.
Meanwhile, the 50 MA was currently acting as a support for the price.
The correction in the market pushed the asset back under the overbought zone. The sellers have pushed XLM into an equilibrium zone, wherein the buying and selling pressures were equalized, at the time of press.
Conclusion
The XLM chart suggested that the movement of the digital asset may continue to move sideways. The indicators also agree that the market is currently stable, however, one can argue that a price swing may not materialize for XLM in the short-medium term as the price continues to stabilize.
