Stellar has been trending downwards since it peaked at $0.71 in the middle of May. The market has been under corrections ever since. The recent bullish week in the market had not been able to reverse the downward trend. At the time of press, XLM stands at a price level of $0.26. The cryptocurrency has fallen by 1% in the past twenty-four hours and the weekly gains are at 6%. The daily trading volume of the nineteenth largest cryptocurrency has increased by 6%.
Technical analysis
The market sentiment of Stellar is neutral. Ten of the total twenty-six technical indicators are standing at a neutral position. Nine indicators of the rest are giving out an indication of buy and seven are suggesting a sell position. The oscillators are neutral while the moving averages are bullish.
Stellar crypto has been identified to be operating in a descending channel formation since march. The cryptocurrency broke out of the channel during the bullish surge of the 2021 bull run. However, as the market started correcting it quickly fell back to the channel. A few minor breakouts to the downside had been occurred since but the lower boundary has been re-established as strong support every time. Currently, XLM is facing a horizontal resistance at $0.27. The cryptocurrency has faced multiple rejections at the resistance level and has currently struggling with it again. Bullish momentum can be restored to the market if Stellar is able to break the resistance level.
Can Stellar restore bullish momentum?
A week ago, Stellar Development Foundation got in touch with MoneyGram regarding a potential takeover. MoneyGram focuses on peer-to-peer payments. The payment giant has had a lot of takeover interest and with the Stellar Foundation now in row, this could mean good things for both MoneyGram and Stellar. The Foundation has also partnered with Advent International, a private equity firm, for the acquisition. If Stellar decided to go ahead with its plan, a surge may be expected from XLM coin. Stellar is expected to be a potentially good investment regardless.
