Stellar Price Analysis: XLM/USD Marching Higher amid Launch of StellarX Decentralized Exchange
- Stellar launches “StellarX”, the world’s first zero-fee decentralized exchange with fiat deposits.
- XLM/USD making strong progression, with indicators pointing to the upside, eyes on a potential reclaim of the $0.30 mark.
The Stellar camp has built a new trading platform known as StellarX, which is decentralized boasting a zero-fee structure. The platform has been built on the Stellar blockchain, which will accommodate a range of trading options. The StellarX website notes it “is the first full-featured trading app for Stellar’s universal marketplace. It was created by a team with deep user-friendly building experience and showcases a wide selection of assets: crypto, fiat tethers, commodities, bonds, and more”.
StellarX is most certainly stepping it up a notch in revolutionizing the industry. The Stellar network charges a flat per-transaction fee as an anti-spam measure. The the fee is nominal (0.00001 XLM) that they refund it out-of-pocket for every trade made on StellarX. Network fee refunds are bundled into a single payment and issued each week. In terms of incentives for users, “If you hold funds in Stellar, you’ll also get a pro rata airdrop each Tuesday. They return all of Stellar’s built-in inflation (1% APR) directly to their users via lumenaut.net. All you have to do is opt in, and they will set this up for you”. The platform is therefore another important step towards democratizing cryptocurrency.
Taking at looking technically at XLM/USD, the price has been making strong ground over the past few weeks. Since the 11th September, it has gained around 40%, initially receiving decent bidding within a strong touted demand area at $0.1800 level. There is a descending trend line and supply zone seen just above. Both of which have already weighed on the bulls, during the trading session of 23rd September. The price had hit $0.3040, well into the mentioned supply, before sellers coming in. The above line of resistance was further confirmed, given the rejection. Eyes will be on for another retest of the $0.3000 mark, which could be game-changing. The bulls will need to gather enough power and momentum to burst through. A retest of the 25th July high up at $0.3512, will then likely come into play.
On the flip side, it is worth noting that current price action is moving within a pennant pattern. Should this continue to be respected, it will further move in favor of the bears. Support to the downside is eyed back down at $0.1900. The lower trend line of the pennant pattern is tracking at the mentioned support. Eyes will also be on a demand zone, seen from $0.1700-$0.1900.
Stellar XLM is the world’s sixth largest cryptocurrency by market cap. In terms of value it sits at around $4.8 billion, roughly $400 million shy of EOS.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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