Stellar price analysis: XLM/USD settles above $0.24 as BitGo announces support for Stellar coin.

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  • XLM/USD is the growth leader among top10 coins on a daily basis.
  • Bulls need a sustainable movement above $0.2825.

Stellar (XLM), the sixth largest coin with the market value $4.55B is trading close to $0.24 handle, off the Asian high t $0.2450. The coin has lost over 7% in recent seven days and stuck in a tight range amid directionless trading and low volumes, characteristic for the cryptocurrency market as of late; the average daily volume slipped to $34M, which is nearly ten times lower than the recent maximum of $318M (September 23).

What’s going on

California-based blockchain security company BitGo added support for Dash and Stellar Lumens cryptocurrencies. The company does not provide crypto trading functionality but offers custodian services. It has recently launched BitGo Trust, a qualified custodian for digital assets licensed by the financial regulator in South Dakota. 

Commenting the decision to provide support for Stellar Lumens, BitGo’s founder and COE Mike Belshe said:

“They have been focusing on the global payments for consumers which is a little bit different than what Bitcoin does”

 

Stellar’s technical analysis

XLM/USD is currently capped by $0.2450 resistance. Once it is cleared, the coin will have a chance to move towards $0.2500 with SMA200 (1-hour) on approach. This resistance is followed by $0.2615 (50.0% Fibo retracement level for the upside movement from June 28 low at $0.1713.

On the downside, the closest support is created by $0.2400 (psychological level, strengthened by 61.8% Fibo) Once it is cleared, the bearish momentum may gain traction and take the price to $0.2334 October 3 low). 

 

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