- Stellar (XLM) implemented its protocol 20 upgrade on September 20.
- The upgrade supports Soroban smart contracts on the Stellar network.
- Post-upgrade, XLM’s price decreased by 4.17%, trading at $0.11.
Stellar
The upgrade that took place on Wednesday was merely a testnet version. However, Stellar disclosed in their blog post dated September 18 that developers can now utilize support for Soroban smart contracts on the network.
Stellar’s testnet unable to move XLM
Soroban smart contracts are developed on the Stellar network for those not acquainted to facilitate the seamless operation of decentralized applications (dApps). Concurrently, Stellar revealed that the mainnet upgrade of protocol 20 might require six weeks.
Post-upgrade, XLM experienced a 4.17% decrease in price. This was unexpected, given that most upgrades to Stellar typically lead to a positive shift in XLM’s value. As of the time this was written, XLM was trading at $0.11.
Bulls are devoid of any defense
Looking at the 4-hour chart for XLM/USD, we’ve observed significant selling pressure recently. This downward trend initially drove XLM to a low of $0.113. Subsequently, another drop was seen, taking XLM to $0.112. Given the growing bearish trend, it’s improbable that XLM will experience a swift recovery.
Further exacerbating the situation, the Awesome Oscillator (AO) had decreased to -0.002. A positive AO value indicates that the 5-period Moving Average (MA) surpasses the 34-period MA.
The negative AO of XLM implies that the 34-period MA exceeded the 5-period MA. Furthermore, the 4-hour chart signals revealed that the AO was characterized by red bars reaching lower lows. Therefore, XLM’s momentum could persistently decline.
Should the AO continue its downward trajectory, traders aiming to profit from a potential increase might need to consider entry points at approximately $0.10. This idea is further supported by the Relative Strength Index (RSI). As of the current update, the RSI stands at 27.19, clearly indicating an oversold condition.
Consequently, should the downward trend persist, XLM’s RSI might fall under 25.00. Yet, a potential reversal in the trend could occur at this juncture. Nonetheless, this scenario would only materialize if purchasers enter the market, potentially pushing XLM’s value back up to $0.12.
During this transitional period, bullish investors may find it challenging to uphold XLM. Consequently, this cryptocurrency’s subsequent objectives range from $0.10 to $0.09.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
