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MoneyGram and Stellar Blockchain News Delivers XLM Support

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·3 min read
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Key Insights:

  • Stellar’s Lumen (XLM) was on the rise this morning, with XLM holders looking to end an eight-week losing streak.

  • News of MoneyGram supporting USD Coin (USDC) remittances on the Stellar blockchain delivered support.

  • Key technical indicators bullish. XLM sits above the 100-day EMA.

On Sunday, Stellar’s Lumen (XLM) rallied by 6.77%. Following a 1.91% gain on Saturday, XLM ended the week down by 3.25% to $0.1309.

Sunday’s rally came from broader crypto market support, with the upside coming despite the continued fallout from the collapse of TerraUST (UST) and Terra LUNA.

While an anticipated shift in the crypto regulatory landscape remains a threat, investors could begin to embrace the prospects of a more regimen sector.

Governments and regulators may look to strike a balance between support for innovation and the protection of investors. Some jurisdictions will likely be more pro-innovation than others, however.

MoneyGram and Stellar Blockchain Partner to Enable USDC Remittances

On Sunday, Bloomberg News reported news of MoneyGram International Inc. (MGI) planning to partner with Stellar blockchain to support stablecoin remittances and conversions to fiat money.

MoneyGram CEO Alex Holmes reportedly said,

“The world of crypto and the world of fiat are not really compatible today. We’re trying to be a bridge from the crypto world to the fiat world.”

Holmes when on to say,

“Users with digital wallets on the Stellar blockchain will be able to convert their holdings into Circle Internet Financial’s USDC stablecoin, which can then be cashed out through MoneyGram’s network.”

The latest news comes in the wake of the TerraUSD (UST) collapse and the brief de-pegging of Tether (USDT) from the dollar.

Unlike UST, USD Coin (USDC) is fully backed by cash and short-dated US government obligations, ensuring a 1:1 peg with the US dollar.

XLM Price Action

At the time of writing, XLM was up 5.04% to $0.1375.

A bullish morning saw XLM rally to a morning high of $0.1417 before easing back to sub-$0.14 levels.

XLM broke through the First Major Resistance Level at $0.1341 and the Second Major Resistance Level at $0.1373.

XLMUSD 300522 Daily Chart
XLMUSD 300522 Daily Chart

Technical Indicators

XLM will need to avoid the Major Resistance Levels and the $0.1279 pivot to target the Third Major Resistance Level at $0.1467. XLM would also need broader crypto market support to break out from the morning high of $0.1417.

A fall through the Major Resistance Levels and the $0.1279 pivot would bring the First Major Support Level at $0.1247 into play.

Barring an extended sell-off throughout the day, XLM should avoid sub-$0.1240 and the Second Major Support Level at $0.1185.

XLMUSD 300522 Hourly Chart
XLMUSD 300522 Hourly Chart

The EMAs and the 4-hourly candlestick chart (below) send a bullish signal. At the time of writing, XLM sits above the 100-day EMA, currently at $0.1337. This morning, the 50-day EMA narrowed to the 100-day EMA. The 100-day EMA closed in on the 200-day EMA; XLM positive.

A move through the 200-day EMA at $0.1465 would support a first visit to $0.15 since May 11.

XLMUSD 300522 4-Hourly Chart
XLMUSD 300522 4-Hourly Chart

This article was originally posted on FX Empire

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