Amidst the bear market a few projects have managed to retain their value as prices continue to plummet. One that has remained resilient nearly the entirety of 2018 is Stellar Lumens (XLM). Stellar has performed well over 2018, overtaking BCH, EOS, and LTC to currently hold the #4 spot in overall market cap. While many projects have stumbled in their development, struggling with scalability concerns or financial woes, Stellar has been full steam ahead making partnerships with major players such as IBM, Deloitte, and Stripe.
Making Moves Amidst Bears
While price has held up well, that is not the only thing Stellar has going for it in 2018. Developers who are interested in building on the Stellar network have many resources available to them.
To further encourage adoption of the Lumens currency, Stellar partnered with Blockchain.com to give away up to 500 Million XLM via airdrop in the blockchain.com wallet. Critics have been vocal about the need to give personal information to be eligible for the giveaway, leaving many seeking alternative wallets where their XLM can be stored. Cryptosomniac did a walkthrough video back on November 8th detailing how to claim your XLM, which can be viewed below.
Pullback From Highs
Technical Analysis shows that even with the giveaway the bulls have begun to run out of steam. Stellar plummetted through previous supports, tumbling from the recent high of just over 4700 Satoshis, down to just over 3400 Satoshis at the time of writing. Sell pressure continues to increase on the MACD and Squeeze Momentum, and increasing sell volume confirms the bears are in full control of this asset at the moment. RSI is trending oversold on the Daily as of the time of writing, so we may see a weak bounce but there will be significant psychological resistance to overcome at the 4000 satoshi level should we see a turn around.
With overall market sentiment trending bearish, it is likely that XLM will continue its slide. What remains to be seen is whether is will retain its resilience as the bear market weathers on.
It has long been speculated that XLM could be one of the next assets added to Coinbase. In the Cryptosomniac community we feel this has contributed in part to the resilience of XLMs valuation. With the recent additions of BAT, ETC, and ZEC, many in the space expected XLM would be next and acted accordingly. As speculators load up on tokens in anticipation of the announcement the price enjoyed a boost over the course of November.
Now XLM looks to be cooling off, having fully retraced back to early November levels. This may be in part due to the failure of the Coinbase announcement and listing of ZEC to move the price. It has been a well documented phenomenon that Coinbase listings can increase valuation as shown with Litecoin and Bitcoin Cash, so it is of interest whether the price has already been "baked in" to the overall token value or whether Lumens will enjoy another boost if the Coinbase rumors are confirmed.
We monitor conditions and report what the charts indicate, stay up to date with our latest Technical Analysis, trading techniques, and what projects we're interested in by joining our FREE DISCORD SERVER.
Join the community for serious crypto traders, stay as informed as you can, see you in the Moon Lounge!
Information provided by Cryptosomniac, LLC is not intended to be utilized in making any financial decisions and are not a solicitation, nor recommendation to buy, hold, and/or sell a particular product, digital asset, or ICO. Cryptosomniac, LLC website, newsletter, email communications, and discussion groups/chats should be used at your own risk. Opinions expressed by Cryptosomniac, LLC are based on personal experience and do not claim to guarantee any results, nor do they imply a recommendation. You can access a full review of our disclaimers and terms of services Here: https://www.cryptosomniac.com/terms-of-services/