Stellar Lumens ($XLM), which was on a roll last week after several high-profile endorsements by MasterCard, Franklin Templeton and even the UN, is now undergoing a sharp correction, as Cryptonews predicted yesterday.
In the last 24 hours, the price of Stellar Lumens has collapsed by about 15.8% and it now trades at $0.4314.
However, for many recent holders, $XLM still remains profitable. Those who have held it for the last seven days are up 84.5%, while those who’ve held it for a fortnight have seen their bags swell by 262.5%.
Undoubtedly, the group profiting the most are investors that have held it for the last thirty days. Their $XLM coffers have swollen by an eye-watering 366.3%, which outpace even those who’ve held since this time last year, although this latter group still have Bitcoin-beating gains of 257.9%.
And speaking of Bitcoin ($BTC), Stellar Lumens’ performance appears to be tracking that of the world’s favourite cryptocurrency. Bitcoin fell 6% overnight down to $92,071. Its closest contender, Ethereum ($ETH), fell 4% down to $3,327.
Stellar Lumens: Where Is It Going?
$XLM launched in 2014, which makes it one of the oldest cryptocurrencies in circulation. Like Ripple’s $XRP and Bitcoin Cash, it was developed to facilitate speedy and cheap cross-border payments.
Unlike crypto daddy Bitcoin ($BTC), Stellar does not utilize a Proof-of-Work consensus mechanism to verify transactions.
Instead, Stellar uses a proprietary consensus mechanism Stellar Consensus Protocol (SCP) which relies on a handful of “trustworthy” nodes that the community periodically elects.
For most of the last six months, $XLM’s price has not deviated far from a dime. However, during the beginning of November, a flood of capital entered the network. This has frequently pushed Stellar Lumens’ relative strength index (RSI) far above 70, meaning the token has been overbought for the majority of the rally.
Now, $XLM is undergoing a sharp correction. As we can see from its three-month price chart below, the token’s rise this month was very rapid, which means a retracement is inevitable.
Considering the coin touched a high of $0.60 on November 24 a fortnight after it was valued $0.10, the correction may shave as much as 50% from its price, which will mean new support forming at $0.30. However, such a heavy retracement is only likely if market leader Bitcoin continues to fall, otherwise, $XLM’s downward spiral may fizzle out sooner.
$XLM’s relative strength index (RSI) is 36 and rising, which indicates people are buying back in and, for the meantime, this could stem any further losses.
Hedge Against Stellar Lumens ($XLM) Crashes With Catslap
The United Nations touted the Stellar Lumens network as a model for a future global financial system, which is as good a recommendation as any. But given $XLM’s current volatility, it’s fair to say that $XLM investors, like Bitcoin and Ethereum investors, are playing the long game.
So, Stellar’s $XLM is likely to crash again before the year is out.
Heading into the festive season, there’s likely to be more seasonal hype around the meme coin sector.
Recently, crypto-savvy investors have been snapping up a brand new Ethereum meme coin has launched directly to DEXs called Catslap ($SLAP).
It debuted on Uniswap last week. Within 24 hours it had blown up over 1,500% as investors bundled in, intrigued by the project’s tap-to-slap mini game.
The game is on Catslap’s official website, where players click (or tap) the screen in order to animate a gif of the viral slapping cat.
The game logs each by country and distributes rewards to the nation at the top of the leaderboard.
The project’s X account already boasts almost 10,000 followers in only five days of trading.
Catslap has a maximum supply of 9 billion, with 50% going towards liquidity, 20% to staking—where investors can earn 40% for locking up their tokens, 10% to community rewards, 10% to development, and 10% to its team (with this latter 10% vested for ten years).
Find Catslap it either via Uniswap or directly via the official website, where 1 SLAP is $0.00251146.
The website urges investors to “buy and stake $SLAP before major announcement!” along with a timer displaying just over eight days left.
The post Is Stellar Going to Zero? XLM Drops 16%, Now Trading Below $0.5 appeared first on Cryptonews.
#IndustryTalk #CatSlap #Stellar #xlm [Source: CryptoNews]