On a day that all top 10 cryptocurrencies were down, one altcoin saw a stellar 6% gain. And that is no other than Stellar Lumens XLM. Since the start of 2018 Stellar has been a newcomer to the big leagues in the cryptocurrency world.
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Stellar Lumens XLM Technical Analysis
XLM/USD has been supported by the 78% Fibonacci retracement level of 0.32. While it remains below the daily Ichimoku cloud, it appears to be gradually making its way back up to the pivot point and 61% Fibonacci retracement level of 0.46. The Chiko span is also moving away from the delayed cloud, moving up. On a less bullish note, the future cloud is moving downwards, and so are the Tenkan and Kijun lines.
With this, we could expect the period of consolidation to continue a bit longer between the two Fibonacci levels. The key resistance is set at 50% Fibonacci level of 0.55.
Why is Stellar in Top 10 Cryptocurrencies?
Stellar is gaining more popularity among the crypto crowd because its blockchain performs fast transactions, and allows for the rapid exchange of fiat currencies such as GBP and USD. Not only that, Stellar lumens cover the conversion fee. Its recent partnerships with IBM and Deloitte adds to the company’s credibility in the space.
End of January, digital payments company Stripe also announced it may add support for the XLM currency.
Stellar has frequently been the winner among top cryptos on days that the majority of the market is down.
Its direct competition could be Ripple. Like Ripple, Stellar slashes Bitcoin’s blockchain transaction settling speed from 10 minutes to a matter of seconds. But where Ripple is considered more centralized, thanks to partnerships with even more established banking institutions and its for-profit status. Stellar operates as a non-profit.
Although Stellar has dropped from the 6th position to the 7th largest crypto by market cap, the market participants still appear to have faith in the digital currency. At the time of writing, Stellar is trailing behind Bitcoin, Ethereum, Ripple, Bitcoin Cash, Cardano, and Litecoin.
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Kiana
