XLM pumps 21% as Euro stablecoin launches on Stellar Network

XLM/USD has rebounded from lows of $0.139 and could break above $0.20 if bulls sustain the upward momentum

Stellar (XLM) has pumped 21% in the past 24 hours as bulls target $0.20. The positive price action for XLM comes a day after a major European bank announced the issuance of a Euro stablecoin on the Stellar network.

A tweet on the official Stellar account noted:

“We’re thrilled to announce that @Bitbond and Bankhaus von der Heydt are now issuing Euro Stablecoin (EURB), the first stablecoin issued directly by a banking institution on Stellar”.

Among the first clients to use the fully regulated EURB token will be crypto payments firm SatoshiPay. According to Philipp Doppelhammer, the managing director at the German bank, SatoshiPay will incorporate EURB in its cross-border money transfer services.

XLM/USD price jumps 21%

The price of Stellar Lumens has bounced off the 61.8% Fibonacci retracement level ($0.139), buoyed by surging buy-side pressure.

Although the momentum appears to have somewhat slowed, the technical perspective suggests bulls might yet strengthen their case. This outlook will be validated if bulls achieve a daily close above the 20-SMA ($0.171).

The level is critical as it presents a declining trendline formed since early December. The past few days have seen the line present a stubborn barrier, which is all the more reason bulls must look to surmount it if they are to break higher.

XLM/USD daily chart. Source: TradingView

If short term buying pressure sends XLM/USD above the trendline, the pair might retest resistance at the 23.6% Fibonacci retracement level ($0.197). Sustaining the upward movement above the crucial level could see bulls eye the 25 November peak near $0.24.

On the contrary, a breakdown from the descending trendline could see XLM/USD drop to the 50% Fibonacci retracement level ($0.157). The next support level beneath this would be the 61.8% Fibonacci retracement level ($0.139).

If bears gain control and push lower, Stellar Lumens’ price could plummet to the 50-SMA support zone near $0.117.

XLM/USD price 4-hour chart. Source: TradingView

On the 4-hour chart, XLM/USD is trading below the 50-SMA ($0.171) and could drop to the 20-SMA ($0.163). Below this level, bulls can seek support at $0.145 and then $0.108.

Stellar price is, at the time of writing, changing hands around $0.169.