- Stellar has recently reclaimed the 6th position ahead of Litecoin in market cap rankings.
- The founder of Stellar and the founder of Tron have engaged in a war of words as both take shots at one another’s projects.
- Support moving forward: $0.1239, $0.1180, $0.1121, $0.10, $0.09866, $0.09329.
- Resistance moving forward: $0.13, $0.1398, $0.1465, $0.15, $0.1568, $0.1639, $0.1682, $0.1741.
Latest Stellar News
Another week, another flippening!
Not too long ago we reported that Litecoin had surpassed Stellar in market cap value and as a result had claimed the 6th position from Stellar. However, Stellar has achieved a re-flippening after surging past Litecoin’s market cap to reclaim the 6th position.
The founder of Stellar, Jed McCaleb, and the founder of TRON, Justin Sun, have recently been involved in a war of words as both founders took shots the other’s project.
In a recent interview with Yahoo Finance, McCaleb had some interesting words to say about banks within the industry and the marketing of Stellar. He made strong remarks against the majority of cryptocurrency projects, and singled out the TRON project.
McCaleb stated that “90% of the cryptocurrency projects are ‘B.S’” and that he was “looking forward to changing that.” He singled out TRON, stating that projects like TRON are complete “garbage” and it does not “technically work.”
In the interview, he also stated that the cryptocurrency market is not collapsing and described it as “still way up.” He continued to argue that the markets are down from their peaks but are still above the previous highs of recent years as interest in the industry continues to grow.
After the interview, the rockstar-like founder of Tron, Justin Sun, took to Twitter to refute the statement made about his project.
He stated that he does not see Stellar as a competitor to TRON as it has a low transaction volume, and that it is centralized and non-democratic. He also included the fact that Stellar hosts no dapps on their network, and is confident that TRON will take their position in 2019.
We don’t think @StellarLumens is our competitor at all since they have extremely low transaction volume, centralized&non-democratic system and 0 Dapps. #TRON will take their place within 2019 anyway. #TRX $TRX #XLM https://t.co/kPuTIwiI0r
— Justin Sun (@justinsuntron) January 1, 2019
Let us continue to take look at the XLM/USD market and highlight any potential areas of support and resistance moving forward.
XLM Price Analysis
Stellar is currently exchanging hands at a price around $0.1239, at the time of writing, after seeing a small price rise totaling 0.37% over the past 24 hours of trading. The cryptocurrency has now seen a 7.17% price increase over the past 7 trading days, bringing the 30-day price increase up to a positive 2.48%.
Stellar, now ranked in 6th position again, currently holds a $2.34 billion market cap value.
However, the market has seen a precipitous loss totaling over 48% throughout the past 90 trading days as the 53-month old cryptocurrency now trades at a value that is 85% lower than the all-time high price.
Analyzing price action from the 4-hour chart above, we can see that since our previous XLM/USD analysis, the market had continued to extend until it reached resistance at our highlighted resistance area at the $0.1465 handle provided by the short-term 1.618 Fibonacci Extension level (drawn in blue).
After reaching this area of resistance, the XLM/USD market began to decline and continued to fall until support was found at the short-term .618 Fibonacci Retracement level (drawn in green) priced at $0.1121.
The market had then bounced from this area of support but was unable to break back above the $0.13 handle to continue higher.
The market is currently trading in a period of consolidation as XLM/USD continues to trade sideways. For this market to be considered bullish, we would need to see XLM/USD break above the previous resistance at the $0.1465 handle.
If XLM/USD break below the support at $0.1121, we can consider the short-term trend to bearish once again.
Where is the Resistance for XLM Above the $0.13 Handle?
If the buyers can begin to drive price action higher and break above the resistance at $0.13, we can expect higher resistance to be located at the bearish .236 Fibonacci Retracement level (drawn in orange) priced at $0.1398. This is followed closely by the short-term 1.618 Fibonacci Extension level (drawn in blue) priced at $0.1465.
If the bulls can then continue to climb above the psychological resistance around the $0.15 handle, further higher resistance can be located at the medium-term 1.272 and 1.414 Fibonacci Extension levels (drawn in purple), priced at $0.1568 and $0.1639 respectively.
Further resistance above this level can then be located at the bearish .382 Fibonacci Retracement level (drawn in orange) priced at $0.1682. This is followed by the medium-term 1.618 FIbonacci Extension level (drawn in purple) priced at $0.1741.
Where is the Support Towards the Downside?
If the sellers push price action below the current support at the $0.1239 handle, we can expect further support toward the downside to be located at the short-term .5 and .618 Fibonacci Retracement levels (drawn in green), priced at $0.1180 and $0.1121 respectively.
Further support beneath the $0.10 handle can then be expected at the short-term .886 Fibonacci Retracement level (drawn in green) priced at $0.098. This is followed by the previous long-term downside 1.618 Fibonacci Extension level (drawn in dark blue) priced at $0.09329.
The market caps of Stellar, Litecoin and EOS are very close to one another so we can expect there to be more flippenings between them all within the near future.
Adding further to the flippening count, TRON has recently overtaken Bitcoin SV for the 9th position and is now also closing in on the three aforementioned cryptocurrencies as the top ranked cryptocurrencies have marginal differences in market cap value.