Bitcoin is trading at $8,797 after days of bearish pressure that saw the $8,700 mark hold as support. Perhaps the token that the present movement affected most was Stellar which was on the upswing last week due to the announcement that half the tokens would be burned.
Today #Stellar burned over 55 billion $XLM— YouHodler (@YouHodler) November 5, 2019
Now XLM is the best performer out of TOP 100 per 24h🥳
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Stellar climbed as high as $0.08265 on Tuesday before it retracted, effectively cancelled out the previous gains it made. Nevertheless, XLM is one cryptocurrency that many traders are keeping a close eye on. This may not be unconnected with the impressive run seeing the coin gain a massive 30 percent after 55 billion XLM coins were burned.
Many crypto traders are saying that the digital currency is in a bullish state. Dr Dovetail, an analyst wrote on Tradingview that even though the current factors could be a fakeout, that XLM could be heading to 9.5 cent in the near future.
“Not a fan of XLM , Jed McCaleb or the recent and very desperate burning of 50% of their total supply..however once thew upcoming bull market kicks in for alts I would not be surprised to see XLM gain 500% or so during that run despite its horrible fundamentals.”
As ambitious as the prediction is, that is the sentiment of many traders even though 500% is pushing it. It is possible that the action by the Stellar team to make a drastic cut on its supply is the needed impetus to move XLM price to exciting values.
The recent retraction was the result of investors’ move to take profit due to unexpected gains. In any case, no one expected the upward movement to last too long bearing in mind that Bitcoin still determines the overall direction of the coin market.