XLM withdraws as Stellar hits this milestone. This is what happens next…
- Stellar makes forward strides toward the goal of supporting global remittance.
- XLM gives up some recent gains as profit-taking increases in the wake of market uncertainty.
It’s a bitter-sweet moment for the Stellar community considering XLM’s bearish price action and the network’s latest milestone. The network just made a step forward in the global payments arena but it comes at a time when XLM cools down after a previous rally.
How many are 1,10,100 XLMs worth today?
XLM was one of the best-performing top cryptocurrencies by marketcap in the last two months. It achieved an impressive 157% upside from its lowest price point to its highest during the last eight weeks. However, its latest performance indicated that XLM bulls suffered from exhaustion.
XLM exchanged hands at $0.145 at press time, which represented a 25% dip from its recent high. Its peak last week was lower than its previous peak on 13 July. This confirmed the fading bullish momentum, allowing the bears to take over in the form of profit-taking.
XLM’s Money Flow Index (MFI) indicator confirmed that the cryptocurrency has been experiencing outflows. But does this guarantee that more downside is coming?
Well, XLM’s volume has been dwindling for the last few days, after peaking on 23 July. We also saw a substantial dip in the weighted sentiment as the market shifted to bearish sentiment.
Will the XLM sell-off be short-lived?
It is worth noting that the prevailing volumes were still notably higher than they were at the lowest monthly level. The weighted sentiment also registered a bit of an uptick which suggests that there was still some bullish optimism in the market. To add to that, the social dominance metric registered a spike in the last 24 hours.
Usually, when such a spike occurs, it means that the underlying cryptocurrency is receiving more attention. That might be true because the spike occurred after Stellar announced the expansion of the Changera app to multiple countries.
— Stellar (@StellarOrg) July 24, 2023
The announcement confirmed that Stellar was still making strides in its journey toward supporting global remittance. Such developments usually contribute to favorable investor sentiment and that might well be what’s happening.
Interestingly, XLM’s downside was limited in the last 24 hours at the time of writing. This suggested that some accumulation has been taking place.
Read about XLM’s price prediction for 2023/2024
The development will likely have little impact on price. This is because other factors in play currently contribute to the slow state of the crypto market. Investors are waiting for the Federal Reserve to announce the next rate hike.
As such, many traders have been standing on the sideline, while some have been exiting their positions as a precaution.