Stellar lumen (XLM) started a fresh drop toward the $0.115 support zone against the U.S. dollar. This comes after the cross-border remittances crypto rose to a high of $0.1300 on Sunday, ahead of the Meridian Conference in Milan, Italy. XLM is up 19% from its lowest point of the year, around $0.098, and boasts a market capitalization of $5.88 billion, according to data from CoinMarketCap.
Stellar Bulls Optimistic Of An Uptrend
XLM price action had formed a bullish cup-and-handle chart pattern on the daily chart, setting itself up for a bull run. At press time, Stellar lumen’s price was exchanging hands above the $0.115 demand zone.
The first hurdle in XLM’s way was the $0.12 psychological level. The next barrier would emerge from the cup-and-handle pattern’s neckline at $0.1300, coinciding with the local high. The 200-day simple moving average (SMA) poses another roadblock around the $0.135 supply zone. Market participants can expect the price to consolidate between these two levels for a few days.
The Moving Average Convergence Divergence (MACD) indicator was moving above the zero line in the positive region, suggesting the market sentiment still favored the upside. Stellar’s upward traction would display increased strength once the MACD moves higher and further away from the midline.
The bullish price structure forecasted a 37% upward move from the current levels to retest the $0.161 supply zone.
Perhaps the most important fundamentals that aptly reveal the bullish outlook for Stellar lumen’s price is the Meridian event hosted by Stellar at the Palazzo Brancaccio in Rome, Italy. This year’s event is themed “The Urgency of Doing.”
Some of the bigwigs in the financial industry are attending. For example, the founder of Reddit and Seven Seven Six, Alexis Ohanian, kicked off the event with Denelle Dixon, the CEO and Executive Director of Stellar Development Foundation, on October 11. Dixon acknowledged Ohanian’s presence at the event in a tweet, saying:
“Major thanks to @alexisohanian for kicking off #Meridian2022 with me. I know our community was just as inspired as I heard about his experience as a founder, father, and visionary.”
Other speakers already at the event include Stellar Development Foundation co-founders Jed McCaleb and David Mazières. Also at the opening was the head of communications at Stellar, Lauren Thorbjornsen. An earlier tweet by the blockchain organization read:
“Happening now on the #Meridian2022 Main Stage: Founders Fireside Chat with @JedMcCaleb and @dmazieres, moderated by @LaurenThor.”
Other prominent speakers expected at the event include Caroline Pham, a CFTC Commissioner, Alex Holmes of Mastercard, Marieke Flament of Near Foundation, and Alex McDougall of Stablecorp.
Such events have, in the past, provided good opportunities for blockchain projects to make significant announcements. For example, Stellar has just announced the launch of the Anchor Platform at the ongoing Meridian event.
“Today at #Meridian, we announced the launch of the Anchor Platform! Ready out-of-the-box software making it easier than ever to build on Stellar!” the Stellar organization revealed in a Tweet.
The Stellar Anchor Platform is a “prepackaged software to reduce the development time and financial investment of building on Stellar” that brings together a global network of wallets and applications in one place. According to the blockchain company, this platform will help businesses to carry out cross-border payments, deposits, and withdrawals at reduced development time and costs.
The Meridian conference is expected to run between October 11 and 13, 2022.
The Flipside
The bullish scenario could invalidate if the price dropped from the current levels to revisit the swing low at $0.106. If the price breaks below this area, then the optimistic thesis would be void, and the XLM price would likely fall to seek solace from the $0.1 psychological level of the cup’s bottom at $0.0986, resulting in a 16% decrease from the current price.
