Since February this year, cryptocurrencies have been dominated by macroeconomics. Investors observed a lot of outflow from the crypto industry, and it is continuing even in September. Due to inflation and other macro factors, cryptocurrencies could be the worst victim in the next few months. Some of the large cryptocurrencies like Bitcoin, Ethereum, and Stellar are still in a downtrend for the long term.
Steller (XLM) was launched in 2014. After that, it became popular as a crypto asset and fiat currency. It is also used for financial transactions in different sectors. Steller (XLM) is the fork version of Stellar Consensus Protocol (SCP).
It has started a partnership with Moneygram and Flutterwave as well as large institutions like New York State Finance Department and IBM. The security and speed Stellar provides are the main factors of its popularity. Besides that, Steller also charges low gas fees for the transactions. Crypto traders find Stellar as one of the popular mediums for crypto transactions at lower costs.
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That is why we think Steller is a dependable cryptocurrency to include in your portfolio. Find more details about the XLM token in our prediction and technical analysis.
XLM was trading around $0.1130 around the short-term resistance. The positive sign is that it has formed higher lows this month. In the last three months, Stellar has been consolidating within a range of $0.13 and $0.1. That means $0.13 is the next resistance level for XLM.
Most technical indicators are bullish; candlesticks are forming in the upper range of the Bollinger Bands with the RSI above 50, suggesting positive momentum in the market. We think it is the right time to invest in XLM for the short term.
After reaching an all-time high of $0.93, XLM has been in a downtrend, but it has taken support around $0.1. The long-term outlook looks bearish, but now it has changed its momentum because it is consolidating for the short term. After that, Stellar could break the resistance of $0.13 for long-term bullishness.
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However, if it breaks the support of $0.10, it will follow the downtrend. On the weekly chart, candlesticks are forming around the baseline of the Bollinger Bands with RSI around 39, so we think immediate support may be an ideal time to invest for the long term. However, you must also set a stop loss assuming the downtrend.
