Why Is Stellar Dropping? XLM Turns Red as Market Shifts – What’s Next? Simon Chandler | usagoldmines.com

The price of Stellar has bounced by 4% in the past 24 hours, although its move to $0.3274 finds the alt down by 7% in a week and by 23% in a month.

Such declines have followed from the general negativity of the cryptocurrency market, which has lost 13% since January 18, as fears surrounding tariffs and inflation weigh down investor sentiment.

Yet XLM holds on to a 200% increase in the past year, and with the alt closely correlated with XRP, the arrival of XRP ETFs – and the end of the Ripple-SEC case – could help it lift off in the coming months.

Why Is Stellar Dropping? XLM Turns Red as Market Shifts – What’s Next?

XLM’s chart shows the token returning to a more bullish position, after several weeks of intermittent decline.

Its 30-period average (orange) has flattened out after dropping below the 200-period average (blue) at the end of January, and it now looks like it’s ready to begin rising back above the longer term average.

Much the same applies to its RSI (purple), which after hitting a six-month low of 18 on February 3 has been winding its way back towards 50, and potentially higher in the near future.

We also see a modest if significant uplift in XLM’s volume, which has risen by 81% in the past two days, to $337 million.

Of course, this is still some 83% below what it was in January, a few days before Donald Trump’s inauguration.

And the main reason why Stellar has dropped is that it has fallen along with the market, which has suffered in the face of a possible trade war between the US and other nations, including China, Canada and Mexico.

XLM also suffers as a result of its association with XRP, which is also down by 22% in the past fortnight, with the latter coin waiting patiently for a final settlement between Ripple and the SEC.

The reason for this association stems from two related facts: 1) that Stellar founder Jed McCaleb previously co-founded Ripple; and 2) that Stellar is also aimed at cross-border payments.

Yet despite its recent losses, some analysts have pointed out that Stellar has been moving in a bullish flag pattern since late January, implying that a big breakout is becoming increasingly imminent.

Assuming a general upturn for the wider market, the Stellar price could therefore return to $0.40 by the end of Q2, before reaching $0.80 by Q4.

New Altcoins Bring Bullish Tokenomics

If XLM is proving a little too modest in its price growth, some traders may prefer to turn to newer alts, which can often outperform the market by wide margins.

While it can be risky picking a new and unproven coin before it experiences its first major growth spurt, there are ways of identifying promising tokens before they break through.

One method is to look for the most successful presales, which can provide an early indication of strong interest in and demand for a token.

And one of the newest and most interesting new projects at the moment is Bitcoin Bull (BTCBULL), an ERC-20 token that has tied its tokenomics to Bitcoin’s (BTC) price growth.

It has already raised over $600,000 in its sale – an impressive feat considering the presale only launched yesterday.

What makes BTCBULL stand out is its ultra-deflationary tokenomics, designed to drive long-term value.

With a hard cap of 21 billion BTCBULL, a portion of its supply will be burned every time Bitcoin (BTC) reaches a new price milestone – starting at $125,000, with additional burns at every $25,000 increase thereafter.

Beyond this, BTCBULL will reward holders with Bitcoin (BTC) airdrops at each $50,000 milestone (e.g. $150,000, $200,000, $250,000), further boosting its appeal.

With such mechanics in place, BTCBULL is quickly capturing investor interest, putting its presale on track to hit $1 million within 24 hours.

Investors can join this sale by going to the Bitcoin Bull website and connecting a compatible wallet, such as MetaMask or Best Wallet.

It’s selling at $0.002355, but this will rise in under five days.

The post Why Is Stellar Dropping? XLM Turns Red as Market Shifts – What’s Next? appeared first on Cryptonews.

This articles is written by : Nermeen Nabil Khear Abdelmalak

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