Stellar Lumens (XLM) has continued to dip lower in today’s session as the coin struggles to keep its head above the water.
The XLM has now lost as much as 25% of its value in the last four days of trading.
Today, the currency is the biggest loser out of the Top 10 biggest coins, closely followed by Binance SV (BSV).
A post on social media suggests that Stellar’s hierarchy is selling XLM in order to cover the running costs. The recent activity of the wallet of the Stellar Development Fund suggests such a scenario is a real possibility.
Looking back at the price analysis of the XLM, it seems that the currency will continue lower in the coming days, as there is no major support to push the price back higher (Graph 1).
Graph 1. Stellar Lumens (XLMUSD) daily chart
Since the break of the major trend line support, (the ascending light blue line), in November 2018, Stellar has been moving lower at a fast pace. Currently, the price trades below both daily moving averages, as well as the descending mini-trend line (the blue line).
In addition, the price moved below the horizontal support, (the purple line), and is closing down on the next major support, which consists of the 127.2% Fibonacci extension and the key horizontal support in this range (the red line).
Thus, these two support levels create a block in the range of $0.07352 – $0.0776, which should provide enough cover for the bulls to stage a recovery.
On the upside, the price would have to move above the mini descending trend line in order for the bulls to regain at least partial control. However, the more likely scenario at this stage is the continuation of the ongoing trend.
Stellar Lumens is currently the 9th biggest digital currency with the market cap of around $1.60 billion. The company has lost around $400 million of its value in the last four days.