Stellar is affected by an outage, which is placing XLM value in a essential state

  • Stellar Network took several of its nodes offline on April 6th.
  • This malfunction caused the transaction validation to stop temporarily.
  • The XLM price retraces as investors post a profit near the local peak at $ 0.60.

The Stellar Network Validator Nodes recently had an unexpected outage. During the same period, the XLM price also hit a dead end and is aiming to retreat.

Validators crash, but the Stellar network continues to work

On April 6, several Stellar Development Foundation (SDF) validation nodes temporarily suspended validation of transactions, causing some transactions to halt while others continued as normal.

In a blog post, the SDT team stated:

The Stellar network remained online throughout the entire downtime of the SDF node. Since it is decentralized and most of the Stellar network validation nodes were still working, the network continued to process transactions.

Although the SDF was working to resolve the issues quickly, popular exchanges like Binance, Bitfinex, and Bitstamp reported the issue when they stopped withdrawals.

Despite the recent setback, there is also positive news around Stellar as investment firm Grayscale added to its XLM holdings last week by purchasing 5.5 million tokens.

Grayscale XLM Stock Chart

The latest addition has brought the total inventory to 68.59 million XLMs, which at current price is around $ 37 million.

The XLM price may reverse if a big red flag develops

XLM price has not made a higher high as it encounters resistance on the ascending centerline of the parallel channel. The technical formation is created by higher highs and higher lows that are connected by trend lines.

After a swing low was created on March 25, the remittance marker was on a trajectory toward the top of the channel. However, the XLM price trip has faced a blockade around the previous local spike of $ 0.60, which coincides with the center line.

A rejection here could cause the Stellar price to plunge towards the lower bound at $ 0.41. However, that downtrend is likely to be exhausted after falling 22% to $ 0.37. This is the government trend support set by the Momentum Reversal Indicator (MRI).

If sellers overwhelm the above levels, the XLM price could drop another 10% to a later demand barrier of $ 0.33.

The recent top signal of the cycle, shown in the shape of a red candlestick on the 1-day chart, gives more credibility to the bearish outlook. This setup predicts a correction of one to four candles.

XLM / USDT 1-day chart

XLM / USDT 1-day chart

A possible spike in buying pressure that would push the XLM price above the MRT’s breakout line at $ 0.70 could cause buyers to pile up. Such a move would give the remittance token a chance to rise by $ 1.42 towards the ascending upper trendline of the parallel channel.

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