Stellar (XLM) Faces Rejection At 21 Day EMA Resistance After Exuberant Rally

Stellar (XLM) has rallied same as the rest of the cryptocurrencies in the last 48 hours. However, it differs from most other coins in the way it has rallied. While cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have already broken past the 21 Day EMA, Stellar (XLM) faces is in a different predicament. The daily chart for XLM/USD shows that the price of Stellar (XLM) has now faced a strong resistance at the 21 Day EMA. It has also retraced slightly after testing the 21 Day EMA. The last descending triangle for XLM/USD broke to the upside but the current triangle has broken to the downside. That being said, the price is still likely to rally as the rest of the market rallies. It will however continue to struggle with the 21 EMA resistance short-term.

The daily RSI for XLM/USD has now become overextended and is due for a retracement short term. It appears that while cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) retrace to their 21 EMA support, Stellar (XLM) will retrace towards its yearly low from the 21 EMA resistance. Stellar (XLM) does appear to have completed a correction short term and is already due for a correction to the upside. The past few weeks have shown us that the momentum is gradually shifting to the bullish side. XLM/USD is expected to rally hard soon as it breaks past the 21 Day EMA resistance. However, for now it will retrace short term to gain enough momentum to break this resistance.

Chart for XLM/BTC (1D)

Just like Ripple (XRP), Stellar (XLM) has continued to see positive developments throughout the bear market. However, they did not have any positive impact on the price and Stellar (XLM) continued to have one of the most brutal corrections among all cryptocurrencies. Stellar (XLM) has seen listings on major exchanges over the past few months which is expected to push adoption in the months ahead as the market recovers. Stellar (XLM) and Ripple (XRP) seemed to be projects that did not have much in common until now, but sooner or later they are going to encroach on one another’s territories. This is because both of them are trying to steer the same audience in different directions.

Stellar (XLM) wants to take the middle man out of the equation and enable peer to peer transactions between the users. It wants to give users the freedom of being in charge of their own money without any company or government agency telling them what they can or cannot do with their money. It also wants to cut out dependence on the middle man. Ripple (XRP) on the other hand wants to empower the status quo. It wants to give more power to the people who have been in charge of our finances for centuries! As much as some people like to believe that we have ample space for both cryptocurrencies to coexist and thrive, sooner or later we are going to see both of these cryptocurrencies confront one another directly.