- Stellar price struggling with the resistance imposed by the 20-day SMA and the Ascending Triangle Apex.
- Parabolic SAR flips from positive to negative invalidating any bullish thesis.
Stellar price rose to a high of $0.284 on Monday, a 43% climb from the July 20 $0.199 low. However, bulls failed to push XLM outside the trading range defined by the descending parallel channel since June 29. The rally saw Stellar flip the 20-day Simple Moving Average (SMA), the 50-day SMA and the 100-day SMA from resistance to support, but bullish momentum was not strong enough to keep XLM price above the $0.270 resistance level.
Stellar Price Snubs MoneyGram Partnership News
News are emerging of Stellar Lumens intentions to purchase MoneyGram, a popular international remittance service provider that formerly partnered with Ripple. Analysist are waiting to see if the negotiations will be successful as previous attempts by deep-pocketed players such as Alibaba and Western Union were unsuccessful.
If the negotiations are successful, Stellar lumens could sky-rocket and with it bring more investors on board.
The enthusiasm behind the MoneyGram deal saw the Stellar Lumens price gain 17% on July 22. However, the news were not enough to maintain the momentum with XLM gaining a meagre 4% over the last four days. This is not the type of price response that should follow a deal that could bolster Stellar to the global platform.
It could be investors are waiting to hear of more concrete progresses on the MoneyGram deal, hence the mild correction.
XLM Price Has To Overcome Significant Hurdles Before Another Upswing
Notwithstanding the speculation, it is important to look at what the technical crypto signals, the price structure and the levels are telling us. For example, from the four-hour chart we can see that the Stellar price went above the ascending triangle apex at $0.270 on July 23 and July 26 but both times were quickly rejected.
Today Stellar is stuck below this level and the 20-day SMA at $0.264 as it exchanges hands at $0.259 on most trading platforms. Moreover, the $0.266 major resistance zone is further reinforcing the resistance.
Stellar Price (XLM/USD) Four-Hour Chart
Is There An Upside To XLM Price?
To overcome the looming resistances, Stellar price needs to close the day above the 20-day SMA at $0.264. However, XLM will be challenged by the major resistance at $0.266. It marks the June 20 low that saw Stellar price bleed towards the June 22 low at $0.198.
If the asset slices through these levels, it will explore the June 29 high at $0.293 after overcoming the resistance at $0.271 and $0.284 respectively. This will be 13% rise above the current price.
However, the position of the MACD below the signal line and the flattening of the RSI indicator shows that the bullish run is losing momentum. Moreover, the Parabolic SAR just flipped from positive to negative indicating that the Stellar price could continue declining in the near term.
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Nancy Lubale
