In 2014, Jed McCaleb the founder of Mt. Gox and co-founder of Ripple (XRP), launched the network system Stellar with former lawyer Joyce Kim. Before the official launch, McCaleb formed a website called “Secret Bitcoin Project”.
The nonprofit Stellar Development Foundation was created in collaboration with Stripe CEO Patrick Collision and the project officially launched that July. Stellar received $3 million in seed funding from Stripe.
Stellar was released as a decentralized payment network and protocol with a native currency, Stellar. At its launch, the network had 100 billion Stellars of which 25 percent of those would be given to other non-profits working toward financial inclusion.
Stripe received 2 percent or 2 billion of the initial Stellars in return for its seed $3M investment. The cryptocurrency, originally known as Stellar, was later called Lumens or XLM, as we know it today.
With a bit of Stellar Lumens (XLM) history behind us, let’s take a look at what is transpiring with XLM from a technical perspective and what may be in store moving forward from the daily chart below:
As we can observe from the daily chart above, after bottoming-out in early April followed by a nice counter-trend rally into early May, where XLM found stiff resistance at the .50 level, XLM has since found the going a bit rougher, sliding lower within a downward channel.
Additionally, XLM presently finds itself attempting to hold both its 50 and 200DMA’s at ‘potential’ support as well as its short-term uptrend line (purple line) as we can witness above.
While the present technical posture of XLM offers both investors/traders no real edge, it’s clear that Lumens finds itself at an important inflection point, technically speaking, with no clear direction.
That being said, it certainly is a positive that XLM continues to do battle at both its 50 and 200DMA’s as well as continuing to hold the line/s.
However, from a negative standpoint, XLM has not been capable of generating any real upside momentum, indicating thus far, that buyers and sellers continue to find themselves on a goal-line stand. In essence, we are witnessing a stalemate at present.
Thus, as both buyers and sellers remain engaged with neither seemingly in control at the moment, let’s take a look at some levels to monitor moving forward that may provide both investors/traders with some clarity.
If, at any point in the days ahead XLM is capable of hurdling the .35 and perhaps, more importantly, the .39 levels, such accomplishment, should it materialize, would surely be a positive development for XLM. On the opposite side of the ledger, the .27-.28 level provides potential short-term support, while more meaningful support is found at the .25 figure.
Nonetheless, it’s apparent that XLM presently finds itself at an important inflection point offering both investors/traders no real edge in either direction, which in answer to our question in the Title of this piece, “Is Stellar Acting Stellar”, the resounding answer remains, inconclusive, for now.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Jon Noel via Flickr
Chart courtesy of tradingview.com