Stellar (XLMUSD) Technical Analysis: Downtrend Pattern Confirmation

Stellar broke through the neckline of its head and shoulders reversal pattern, confirming that a downtrend is underway. Price could slide by the same height as the chart formation, which spans .2400 to .2600.

The 100 SMA has also crossed below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the selloff is more likely to resume than to reverse. These moving averages are close to the broken neckline around .2450 and might hold as dynamic resistance in the event of a pullback.

Stochastic was on its way up but is turning back down to signal that sellers are eager to return. RSI is still treading sideways to reflect range-bound action.

Australia announced plans to create a stablecoin based on the Stellar blockchain but this hardly did the digital asset any favors. In an interview with Coindesk Peter Cook, Novatti’s Managing Director, cited:

We think that people will use them [stablecoins] to help purchase goods from Australian enterprises. And we think that will also use them for the payment of bills or for services inside of Australia.

Furthermore he also explained:

We will be working with licensed money service businesses, banks and enterprises, who want access to digital assets. Novatti is a publicly listed company, it’s listed on the Australian stock exchange. So that should give [users] a lot of trust.

Novatti is a global software technology and systems integration provider that focuses on the demand for alternative methods of transferring money rapidly.

Meanwhile, California-based startup crypto wallet Edge launched its Version 1.4.0 update that integrates exchange platforms Changelly and ShapeShift for additional currency support. It also adds support for Stellar, with CEO Paul Puey noting:

“Today’s update ensures Edge Wallet users have access to the most competitive trading options available and furthers our mission to build easy-to-use products with cutting-edge security and user privacy.”

Leave a Reply