Stellar XLM was among one of the few major cryptocurrencies to see a bullish sentiment on Wednesday. Its price has found support at a key Fibonacci level ever since Stripe announced they might back up the digital currency. Here is a quick overview.
Stellar XLM Technical Analysis
Although Stellar XLM (aka Lumen) started Wednesday's day below the daily Ichimoku cloud, it managed to find support at the 50% Fibonacci retracement level of 0.46. This level has acted as a key support multiple times since Stellar’s Lumen started its descend from the all-time high of 0.98 beginning of January.
Since then, XLM/USD has been mainly ranging between 0.68 and 0.46, with an exception of a temporary fall towards the next support level of 0.35 two weeks ago. With that, the future Ichimoku cloud remains flat, but the Tenkan line is just about to cross below the Kijun line, giving us mixed signals as far as technical analysis goes.
Stellar XLM Fundamentals
From a fundamental point of view, Stellar has surged to become the sixth most-valuable cryptocurrency after digital payments company Stripe announced it may add support for the XLM currency.
Stripe handles payments for more than 100,000 businesses. The company said it would stop processing bitcoin transactions on April 23 because of slower transaction rates and high fees.
They might add support for Stellar XLM to which they provided seed funding as well.
Adding to the hype, the Mobius Network (aka “Stripe for Bitcoin”) ran its initial coin offering (ICO) on the Stellar network instead of ethereum.
Mobius Network co-founder and CEO David Gobaud said their decision was because they "look at Ethereum like AOL or Myspace."
Mobius raised $39 million in their ICO. It was one of the larger recent token sales and the largest by far on the Stellar platform. The company accepted only Stellar XLM, in exchange for its own token, known as mobi.
Stellar is a platform that connects banks, payments systems, and people. Its decentralized protocol is best used for sending any pair of currencies directly on the internet.
This article was originally published on Invest Diva