- Stellar cuts its total supply 55 million tokens in a coin burn process.
- The bullish flag pattern suggests that a reversal is in the offing towards $0.0850 supply zone.
The Stellar community is the happiest in the cryptocurrency space following an incredible correction that saw the crypto add over 25% in less than 24-hours. The gains followed news that the network was reducing its total supply by about half. In other words, 55 billion XLM tokens have been removed from circulation.
Meanwhile, the price is dancing at $0.0809 after adjusting from the recent high at $0.0896. The ballistic correction took advantage of the support accorded to Stellar by the Moving Averages (Mas) on the one-hour chart. Overwhelming bullish pressure engulfed Stellar on breaking $0.07 resistance (current tentative support). Movement to the recent high at $0.0896 took place in a couple of successive engulfing candle.
XLM/USD 1-hour chart
Stellar is trading above the bullish flag pattern resistance. This pattern is used in technical analysis to show that a continuation movement is likely. In this case, Stellar has the potential to reverse the downtrend towards the resistance at $0.0850 and the supply zone at $0.090.
The Relative Strength Index (RSI) had hit levels close to 90 during the upsurge. However, the reversal with the bullish flag pattern saw the RSI retreat to 60. A gradual upward sloping movement above this level signifies the improving bullish technical picture. Moreover, the 50 MA is holding ground above the 100 MA. As long as the gap between the two continues to widen the price will remain under the influence of the buyers.
Stellar Key Technical Indicators
Spot rate: $0.08116
Percentage change: 17% in 24-hours