- XLM price trades above the 50-SMA after losing over 3% in 24 hours.
- Ukrainian president signed digital currency law cementing partnership with Stellar.
- A sustained bullish recovery could propel XLM above the $0.34 psychological level.
The Stellar price has declined 3.35% over the last 24 hours from which has seen its total market capitalisation decline by approximately 2.7% to stand at $14,756,590,579 at the time of writing. This bearish leg saw XLM tag lows of around $0.285 on Sunday as sellers appear to not be bothered by development in Stellar’s Partnership with the Ukrainian central bank.
Ukrainian Central Bank To Issue Digital Currency
Stellar Development Foundation’s (SDF) partnership with the National Bank of Ukraine on jointly developing a strategy for digital assets and central bank digital currency (CBDC) infrastructure was cemented when the Law On Payment Services was signed last week. The law was signed by the Ukrainian President Volodymyr Zelenskyy officially permitting the country’s central bank to issue a CBDC, the digital hryvnia, according to a last week’s announcement.
The new law:
- Permits NBU to set up regulatory frameworks to test digital payment services and utilities based on emergent technologies.
- Requires private start-ups in the payment market to collaborate closely with the Ukrainian Central bank, considering the increasing demand from the private sector.
The announcement also noted that the new law is particularly intended to align the Ukrainian legislation to the European Union Legal Framework which would, in the end, allow for the integration of Ukraine’s payment system with that of the EU.
Stellar Price Trades Above the 50-SMA
At the time of writing, the Stellar price hovers around $0.296 on crypto exchanges and appears to be battling overhead pressure exerted by the $0.30 psychological level.
Note that XLM needs to shatter the overcome the $0.30 psychological level to re-start the bullish leg that was started on August 06. If this happens, the Stellar price could surge above the $0.31 major resistance level. Greater aspirations should bolster the XLM price to the June 10 high around $0.37 in the longer term. To achieve this, XLM will have to overcome major resistance at $0.34 psychological level.
XLM/USD Four-Hour Chart
This bullish narrative is accentuated by the position of the Moving Average Convergence Divergence (MACD) line (blue) above the zero line in the positive zone and the green SuperTrend line below the XLM price as seen on the four-hour chart.
Furthermore, the Relative Strength Index (RSI) upwards movement towards the oversold zone shows that the bulls are in control of XLM.
Looking The Other Side
Note that if XLM closes the day below the 50-SMA, the bullish thesis will be invalidated and Stellar could fall below the $0.276 support wall at the 100 SMA or further below to the 200 SMA at the $0.257 support zone.
- If you wish to trade Stellar, this list of best crypto brokers could be of help.
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Nancy Lubale
