XLM prices stay stagnant despite the foundation’s latest venture
- Stellar Development Foundation announced its investment in MoneyGram International on 15 August.
- XLM Daily traders, however, continue to exit their positions for profit.
The price of Stellar Lumens [XLM], the native token of the Stellar network, has failed to impress investors with its stagnant trajectory. As of this writing, XLM traded at around $0.12, a 4 % decrease from the day before.
Read about XLM’s price prediction for 2023/2024
The Stellar Development Foundation’s (SDF) announcement on 15 August also failed to strike a response from the token. The foundation said it has invested an undisclosed amount in MoneyGram International, a major money transfer company.
The decision to invest in @MoneyGram was an easy one. After years of getting to know the business and the teams, we are excited to take part in MGI’s next chapter. It’s been an awesome few years working together, and we are excited for what’s next!https://t.co/PYAKHeXRxx
— Denelle Dixon (@DenelleDixon) August 15, 2023
In the announcement, the foundation behind the open-source, decentralized protocol noted that its investment in the financial institution would be channeled towards:
“Expanding its digital business, exploring blockchain technology, and contributing to the many other ways this financial technology company enables consumers and businesses to move and manage money in nearly every country around the world.”
All’s well that ends well
Between 15 June and 13 July, XLM’s value rallied significantly. It experienced a 104% growth in its market capitalization and a corresponding uptick in price from $0.07 to $0.15 during that period, data from Santiment showed.
This led it to rank as one of the best-performing top cryptocurrencies in June and July, per data from CoinMarketCap.
The price began its descent as buyers’ exhaustion beset the XLM market shortly after. Trading at $0.12 at press time, the alt’s value has since fallen by 20%.
Although SDF’s investment in MoneyGram represented a significant milestone toward achieving the network’s objective, XLM’s daily traders remain unmoved by the news.
An assessment of price movements on a 12-hour chart revealed significant selling pressure. A look at XLM’s Directional Movement Index (DMI) showed that sellers controlled the intraday trading session.
At press time, the positive directional movement index (green), which tracks the strength of an asset’s uptrend, rested below the negative directional movement index (red), which measures the strength of the downtrend. This signaled that XLM that sellers had forced buyers out of market control.
Moreso, key momentum indicators rested at oversold positions as of this writing. For example, XLM’s Relative Strength Index (RSI) was far from its 50-neutral line at 30.23. Likewise, the alt’s Money Flow Index was 24.25 at press time. These suggested increased XLM sell-offs in the last 24 hours.
How much are 1,10,100 XLMs worth today?
Vote of no-confidence
As XLM’s price craters in the last month, its Open Interest in the futures market has also plummeted. When an asset’s Open Interest declines in this manner, it means that traders have become less confident in the market and are reducing their exposure.
Profit-taking activity has climbed in the XLM market as investors take to exiting their positions.