XLM support holds at $0.40, eyes new highs: Check forecast

The crypto market is having a bearish start to the week as most leading assets are in the red. The market has been consolidating over the last 24 hours, with Bitcoin still trading around $115k. Ether, the leading altcoin by market cap, also failed to recover above $4,300 and now risks dropping to the $4,100 region. Stellar Lumen’s XLM performed excellently in recent weeks but is currently undergoing a correction. Its bearish performance comes despite positive news from the Stellar ecosystem late on Monday. Stellar Development Foundation invests in Archax XLM, the native coin of the Stellar ecosystem, is down 1% in the last 24 hours. The bearish performance comes despite the Stellar Development Foundation (SDF), the organization supporting the Stellar blockchain, announcing on Monday that it invested in UK-based digital asset exchange and tokenization firm Archax. This investment is part of a broader partnership to boost tokenized real-world assets (RWAs). In addition to this, Archax has already integrated the Stellar network into its in-house tokenization platform and has launched a tokenized Aberdeen money market fund. While the firms didn’t disclose the size of the investment, Raja Chakravorti, chief business officer at the Stellar Development Foundation, pointed out that the Stellar network was purpose-built to enable fast settlement times, low costs, and the tokenisation of real-world assets, which is the future of finance. XLM could reclaim $0.45 if the $0.40 support holds The XLM/USD 4-hour chart is bearish as Stellar has lost more than 7% of its value over the last seven days. The negative performance comes as Bitcoin undergoes a correction after hitting a new all-time high last week. At press time, XLM is trading at $0.4044, with the bulls holding the price around the $0.40 support level in the last few hours. The technical indicators suggest a weakening bullish momentum, and XLM could face further selling pressure if the bulls fail to regain control of the market. The Relative Strength Index (RSI) of 40 shows that sellers are now in control of the XLM market. However, XLM is not yet in the oversold territory, allowing bulls to regain control in the near term. Furthermore, the MACD lines have crossed over in the negative region, indicating a shifting bearish momentum. If the bearish trend continues, XLM could drop below the $0.40 support level and test the $0.36 zone for the second time this month. Failure to defend this level could see XLM drop to the $0.22 support region for the first time since July 2nd. However, the bulls could regain control of the market, allowing XLM to reclaim the resistance level at $0.45 in the near term. An extended bullish run could see XLM reclaim its July high of $0.52. The post XLM support holds at $0.40, eyes new highs: Check forecast appeared first on Invezz