Steller is a popular decentralized transfer protocol offering digital currency to fiat cross-border transactions at lower costs. XLM is a leading altcoin in the market, which is in high demand. It is one of those cryptocurrencies that formed a yearly low after the downtrend due to the FTX liquidity crisis.
At the time of writing this post, XLM is trading around $0.089, just above the yearly low of $0.079. On November 27, it tried to regain the previous support but changed the momentum forming a reverse hammer candle with a good volume that suggests it will consolidate around $0.089 in the next few weeks.
On the daily chart, Bollinger Band lacks volatility, and candlesticks are forming around the baseline, while MACD and RSI are bullish. These technical indicators suggest a positive momentum is developing in the last few days. However, will Stellar Lumens regain its previous support?
On the weekly chart, it formed higher highs and higher lows in July-October, but after the FTX liquidity crisis, XLM broke the strong support of $0.1 and formed a bearish engulfing candle in the first week of November. After that, it is trading around the yearly low, and it is tough to predict a trend for the long term because it may either break the current support or the previous support, which is working as a resistance.
We think if you accumulated Stellar around $0.1, it is time to wait before accumulating more coins for the long term. Otherwise, it is a better price to accumulate the coin if you miss the previous level.
The US Congress and SEC are currently investigating the FTX liquidity crisis, and crypto enthusiasts are expecting that the judgment will hold the company authority responsible for the bankruptcy. Any significant news may disrupt all fundamental and technical analysis for the short term.
Besides that, Binance, the leading crypto exchange, has started a crypto reserve fund to prevent such issues in the future. It boosts the confidence of crypto enthusiasts, and they will come back in the next few months. It is an uncertain time, and the market could be volatile.