- Stellar to develop a new second-layer of pendulum block with SatoshiPay
- The XLM/BTC pair was trading at 0.00001041 BTC with a loss of 2.10%
- A descending triangle pattern was spotted in a 4hr time frame.
XLM coin shows an evident support resistance level in the daily time frame, and the price is respecting those levels. As for now, the price is setting at a very crucial support zone around $0.345- $0.327 which is also a Fibonacci level of 0.618 and is forming a hammer candle indicating the lower price rejection.
Even though the overall sentiment of this coin is bearish, the price has to give a daily candle closing below this zone to confirm this bearish trend.
About the EMA, XLM is trading below all vital EMA’s 20, 50, 100, and 200 indicating a solid downtrend formation. All of these EMA’s will act as good resistance as the price is higher.
The RSI(bearish) is currently at 36, indicating an ongoing bearish momentum with no sign of reversal yet.
The Stellar Still Shows A Clear Downtrend Movement Despite The Announcement To Develop A Second-Layer Pendulum Blockchain With SatoshiPay.
In the 4hr time frame, XLM coin forming a descending promoting more down movement, if the support level of $0.345 is breached, the price could fall till the next support level of $0.224. The downtrend trendline will act as a strong resistance for any upside movement, and a breakout from this trendline could be the early indication of a reversal.
The MACD indicator moving below the neutral indicates the presence of bearish movement. Also, the multiple crossovers of the signal line and MACD line suggest an unclear motive of price in any direction.
Fundamental analysis: Stellar has provided a research and development permit to SatoshiPay to create a new second-layer blockchain network,’ Pendulum,’ this new network will help stellar connect to the broader DeFi ecosystem, by adding the smart contract support and link to Etherum and Polkadot.
As stellar has its unique feature of transaction of digital representation of all fiat and cryptocurrency, Stellar will serve best for the needed link between traditional finance and the growing DeFi industry, to achieve this stellar needs the capability to provide custom smart contract and to establish the path that links it to other blockchains in the ecosystem. This is precisely what the new pallidum can help us to achieve.
Conclusion- From the technical perspective, investors can see price is setting at a very crucial level of $0.34, despite the news of steller to develop a new second-layer blockchain network Pendulum, no strong movement can notice in XLM, investors can wait to see how price react before entering the market as a breakout from this level can drop XLM token to $0.22 level.