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As a recap, XLM failed to hold the support at $0.050.
As a result, the price of the XLM falls at $0.041.
Based on the chart, XLM is now in the consolidation stage. The price is just moving at $0.041-0.048 level.
Let us talk about
What keeps the price of XLM to fall despite the burning of 50 billion XLM?
First, the massive airdrops of XLM that the stellar team conducted for mass adoption of XLM around the world.
These airdrops are held in the blockchain.com, key base app, and coin base exchange.
These airdrops are good for mass adoption!
However, in the short-term, this is unfavorable as the users who received the free XLMs sell it immediately causing the price of XLM to fall.
Second, the staking rewards for holding XLM in Binance Exchange.
In this program the user will receive a free XLM by just holding at least 10 XLM in their Binance wallet. An additional 9,500,000 XLM from prior staking activities will also be distributed to XLM holders based on their average daily holdings.
This program slightly contributes to the decrease of the price as the users who received their staking rewards immediately dump their XLMs.
Third, Bitcoin (BTC) failed to rally above the resistance levels.
Most of the altcoins follow the movement of BTC. Based on the chart of BTC, it is still in the downtrend. Hence, most of the altcoins including XLM will continue to be in the downtrend.
Always set up your stop-loss.
Hit like and follow me for more updates.
Happy Trading!
Please do your own charting and research.
As a recap, XLM failed to hold the support at $0.050.
As a result, the price of the XLM falls at $0.041.
Based on the chart, XLM is now in the consolidation stage. The price is just moving at $0.041-0.048 level.
Let us talk about
What keeps the price of XLM to fall despite the burning of 50 billion XLM?
First, the massive airdrops of XLM that the stellar team conducted for mass adoption of XLM around the world.
These airdrops are held in the blockchain.com, key base app, and coin base exchange.
These airdrops are good for mass adoption!
However, in the short-term, this is unfavorable as the users who received the free XLMs sell it immediately causing the price of XLM to fall.
Second, the staking rewards for holding XLM in Binance Exchange.
In this program the user will receive a free XLM by just holding at least 10 XLM in their Binance wallet. An additional 9,500,000 XLM from prior staking activities will also be distributed to XLM holders based on their average daily holdings.
This program slightly contributes to the decrease of the price as the users who received their staking rewards immediately dump their XLMs.
Third, Bitcoin (BTC) failed to rally above the resistance levels.
Most of the altcoins follow the movement of BTC. Based on the chart of BTC, it is still in the downtrend. Hence, most of the altcoins including XLM will continue to be in the downtrend.
Always set up your stop-loss.
Hit like and follow me for more updates.
Happy Trading!
Please do your own charting and research.