Recovery of XLM Since the Coronavirus Crash
Doing a similar analysis of XLM, we find that during the Coronavirus crash, the digital asset dropped from a value of $0.06 to around $0.026. At the time of writing this, XLM/USDT is trading at a value of $0.0729. This indicates that XLM has more than recovered from the Coronavirus crash by a factor of 1.215x (121.5%) and thus succeeded in outperforming XRP in the same time period.
Further checking the daily XLM/USDT chart courtesy of Tradingview.com, the following can be concluded.
XLM/USDT is in a clear downtrend indicated by a red trade volume.
The MACD has crossed in a bearish manner above the baseline with the MFI also pointing towards a retracement.
However, the current price of $0.0729 is above the 50-day, 100-day, and 200-day moving average further providing some adequate support zones at $0.070 and $0.058 respectively.
There is also a very valid golden cross that will be tested in the days to come as Bitcoin looks set to test levels below $9,300.
Staking of XLM Made Easier by Binance
One possible reason for XLM outshining XRP, besides a relatively more bullish chart, is the fact that staking Stellar has been made easier by Binance. The latter exchange facilitates an estimated annual yield of between 2 – 4% in XLM from staking the digital asset.
The latest dump in the entire crypto space has caused a significant loss in Stellar’s price over the past hours. Earlier this month, it traded as high as $0.086 after seeing a three-month recovery from $0.027 in March.
But currently, the price is trading around $0.0678 after losing almost 20% in two weeks. The weekly close below the 3-month ascending trend line – as can be seen in the above chart – indicates a strong sell signal for this pair.
Meanwhile, the daily 8.5% correction is now driving the price towards a critical demand area (marked grey on the price chart). If the bears continue to accelerate the pressure, heavier drops could be expected in the coming days.
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