Bitcoin’s value reached $56k, while the altcoin market still seemed to be at its height. With a market capitalisation of $11.18 billion, Stellar [XLM] was trading at $0.4925.
The digital asset was moved down to the eleventh spot on the CoinMarketCap list, but stayed in line with the popular trends reflected in the altcoin market.
Stellar six-hour chart
Source: XLMUSD on TradingView
The above chart of Stellar demonstrated the slow growth of the coin. The price of the digital asset picked up from the lows of $0.276 and $0.3126 starting in February and approached close to the $0.8963 mark. As it reached resistance at $0.5805, the value fell and was currently moving sideways between $0.5805 and $0.4734.
As the current trend persists, we can see that the value of XLM continues to increase.
Reasoning
The new trend in the XLM market has been bullish, indicating that the market has gained a sense of price stability. This was attributed to the market correction observed over the last few days.
The Bollinger Bands, which suggested high volatility when the rally was taking place, had converged. This convergence was a sign that the price was moving within a limited range. Meanwhile, the signal line was shifting entangled with the candlesticks, noting that the market was seeking to stay bullish.
In the meantime, the 50 MA was currently acting as a price support.
The market correction moved the asset back into the over-purchased zone. At the time of the news, the sellers forced XLM into a balance zone where the buying and selling forces were equalised.
Conclusion
The XLM chart indicated that the rotation of the digital asset will continue to shift sideways. The indicators also accept that the market is currently stable, although it can be argued that the price swing will not materialise for XLM in the short-term as prices begin to stabilise.
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