XLM dips by 4% despite JPY and USD stablecoins launching on Stellar
XLM has lost 4% of its value in the last 24 hours despite the Stellar Organisation announcing a huge adoption news a few hours ago.
XLM, the native coin of the Stellar blockchain, has lost more than 4% of its value in the last 24 hours. It is underperforming in tandem with the broader cryptocurrency market.
The poor performance comes despite the Stellar Organisation announcing that MO-Z.com Trust Company, Inc. will launch GYEN, the first regulated Japanese yen (JPY) stablecoin, and ZUSD, a U.S. dollar stablecoin, on the Stellar network.
The Stellar Organisation believes that the launch of the stablecoins will allow users to transact seamlessly and cost-effectively, leveraging GYEN and ZUSD for near-instant, borderless transactions.
XLM’s poor performance comes as the broader crypto market continues its underwhelming performance this week. The total cryptocurrency market cap now stands at $836 billion, down by 5% in the last 24 hours.
The cryptocurrency market has lost nearly $200 billion since the start of the week. Bitcoin is trading above $16k per coin after losing 6% of its value so far today. Ether is also down by 2% today and is trading around $1,100 per coin.
Key levels to watch
The XLM/USD 4-hour chart is bearish, as Stellar Lumen has been underperforming since the start of the week. The technical indicators show that XLM is performing on par with the broader crypto market.
XLM/USD Chart By TradingView
The MACD line is deep within the negative zone, indicating a bearish trend for Stellar Lumens. The 14-day relative strength index of 35 shows that XLM could enter the oversold region if the bearish trend continues.
At press time, XLM is trading at $0.0907 per coin. If the market sell-off continues, XLM could drop below the $0.0814 support level before the end of the day. In the event of an extended selling pressure, XLM could trade below the $0.0730 support level for the first time in a year.
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