Stellar Price Analysis: XLM/USD Taking Big Steps Towards Another Breakout Attempt, Prime Trust Adds Support for Stellar
- Stellar’s native token Lumens is currently working its way towards another big retest of key near-term resistance.
- Price Trust, blockchain-based trust company, have announced their full support of Stellar.
Stellar’s native token, Lumens, is making good headway for another big attempt at a breakout to the upside. The price has been trading firmly within a range-bound nature, for the past couple of months. There has been a lot going on around the Stellar foundation, in terms of developments. This current suppressed price action may not somewhat reflect the recent fundamental updates. The price is seemingly being kept at bay, in line with the rest of the crypto market.
Prime Trust adding Stellar-enabled Tokens
Prime Trust, a blockchain-based trust company, announced that they have added support for Stellar. The organization acts as custodian; they hold cash and a variety of non-cash assets such as Bitcoin, cryptocurrencies, tokens and other traditional assets, stocks and bonds.
Upon the support of Stellar, they stated that, “this is an important milestone in an industry that has been in need of SEC qualified custodians to step up. To hold digital assets in custody for hedge funds, institutional investors, exchanges, broker-dealers, stablecoins, and retail customers.”
The Chief Product Officer at Prime Trust commented on the popularity of Stellar, noting “Stellar is emerging as one of the most popular blockchains for tokenizing financial assets, as well as securities due to its speed and out of the box support for issuing and trading tokens.”
Other Stellar Developments
It appears custodians are taking a real liking to Stellar. Just over a week ago, the blockchain security firm BitGo announced their support of Stellar Lumens. A move that enabled custodial solutions for Stellar.
Technical Review – Daily Chart
XLM/USD has remained heavily dictated by a triangle formation. This started to take shape from the back end of July to early August. The price went through a roller-coaster of movement. XLM/USD had a chunky bull run late July, to only run into resistance and see the gains completely reversed. In terms of the trading range, it has been mundane to say the least. A lack of firm committed action in either direction. Each occasion the price observes a short-term rally, the bears have been pilling in to sell those. XLM/USD also having faced difficulty breaking free from the above-mentioned pattern.
On Monday 15th October, the bulls were able to enjoy a strong rally for XLM/USD. The daily candlestick produced a bullish upside wick. After the price made a fast advance up, to the run into sellers camping ahead of the key descending trend line. The bullish daily candle looking susceptible to being filled during the session today (Tuesday 16th October). Resistance is tracking around $0.25800, upper part of the triangle formation. A breakout north, should take XLM/USD flying towards a retest of $0.30000. Last traded here on 23rd September. Support to the downside seen at the round $0.20000 number. Further south, a strong demand area is noted around $0.18500.
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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