Today we finally saw Stellar Lumens react to market movements as it should have done several years ago when price consolidation was struggling while other altcoins were following the Bitcoin hype.
Although many would say that at least XLM didn’t become a victim of BTC dominance, it’s still important to note that short term spikes are very important for a coin’s popularity with the majority of traders.
It seems that Stellar Lumens has finally delivered that additional assurance to its hodlers that the coin is still tradeable by jumping more than 11% in a single night.
The price passed the crucial $0.1 resistance level but has failed to maintain it as it plummeted back to $0.97 and keeps on going down as we speak.
XLM chart by Trading View
Although XLM managed to react to market movements in the short term, it doesn’t really paint a good picture for it in the medium term, as Bitcoin dominance continues to garner support and all indicators are showing a strong sell for Stellar.
The price is likely to correct itself back to around $0.94 support levels. Should that be broken the coin has a large gap of falling as low as $0.88 in the medium term.
All that Stellar bulls need to know right now is that during the BTC dominance it’s important that they hodl the coin before altcoin season and hope a similar pattern is seen when the market recovers.