The XLM/USD pair between the 27-29th November was making strong progress to the upside, having gained a chunky 25% within that period. This came after the price managed to find a bottom area, just below the $0.14 area. On the 27th, XLM/USD produced a reversal doji candlestick, laying the foundation for a recovery from the market bulls. They did indeed capitalize on this, as demonstrated with the mentioned gains. However, on Friday the bulls ran into a barrier within a new area of resistance – a strong former demand zone.
XLM Jumps over BCH
XLM has moved on to become the fourth largest coin by market cap, leaping over its peer Bitcoin Cash. Despite the extremely volatile times seen of late for the market in general, Stellar’s XLM has been on that has held stronger ground. As a result, it has swiftly moved into the top four. As of the time of writing, the market capitalization of XLM is observed at $3.03 billion. This is slightly higher than Bitcoin Cash, which is currently $3.01 billion. The development marks XLM’s highest rank to date, as the terminology goes, a ‘flippening’ has taken place with XLM over BCH.
NDAX Lists XLM onto its Exchange
National Digital Asset Exchange Inc. (NDAX), a cryptocurrency exchange based in Canada, is the latest to support Stellar’s native token XLM. The Canadian platform has announced it is introducing Stellar Lumens to their trading platform. This will be paired against the Canadian Dollar. NDAX detailed that trading of this pair will be free until 31st January 2019. The exchange however will not be offering XLM/BTC pairing initially. They noted this will be explored once the market trading liquidity has developed on their side.
Technical Review – XLM/USD
As mentioned above, the bulls lost momentum following the recent 3-day surge higher. The run was halted by some resistance in the $0.17 price territory. XLM/USD peaked here on Thursday and early on Friday. Between $0.17 to $0.19, this will now likely act as an area of supply. From the 23rd June right up until the 24th November, this zone had been serving as very committed buying area. It had protected the price from a fall on several occasions, within this mentioned period. Eyes will now be on how deep this pullback will be.
Keeping in mind the cooling detailed above, support will be looked up now. The next real major area of support isn’t seen until the recent bottom area that was formed. This started to take shape between the 25th November – 27th November. The newly formed demand zone tracks from $0.1450 down to the low produced on the 25th at $0.1359. Should downside momentum resume at its current course over the weekend, there very well could be a retest of this recent low area to the downside. Any breach would likely send the price free-falling.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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