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Stellar (XLM) Price Drops Due to Controversial Token Burn

Stellar (XLM) Price Drops Due to Controversial Token Burn

Stellar price drops nearly five percent in the past 24 hours, and it loses its previous gains. It burns 55 billion Stellar tokens.

13 November 2019, AtoZMarketsAltcoin known as Stellar (XLM) has been in the top 10 of crypto assets by market cap for some time, but it is one of the least popular since the bear market started in 2018. Last week, Stellar (XLM) hit the headlines when the Stellar Development Foundation announced it burn 55 billion Stellar token to halve the supply. The news of the halving catalyzed an impressive pump that saw XLM climb more than 30% in less than 48 hours.

Stellar Price Drops

Unfortunately, the crypto token gave up most of his winnings. Smart investors took advantage of the recovery to make profits. As a result, Stellar Lumens has lost its bullish vigor. The cryptocurrency then dropped to $ 0.07. It was the price that XLM was negotiating before the news of the halving triggered the pump.

Stellar Price Drops

While those who bought because of FOMO were burned, those who waited until the setback was over were rewarded. Stellar was able to show gains of more than 20% in four days. On Tuesday, XLM managed to climb up to $ 0.08265 before succumbing to profit-taking. This is an increase of 21.6% since the low of $ 0.06799 reached on November 8th.

Despite the recent fall of the last hours, analysts are turning up on the cryptocurrency. Nick Hellman, vice president of LearnCrypto.io, agrees that Stellar Lumens is optimistic. Monday night, the analyst qualifies the decline after the halving of “healthy.”

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Stellar Lumens Has Entered Bull Territory

To say that XLM is in a bull market right now could be a call a little too early. However, Mr. Hellman seems convinced that cryptocurrency is on the rise. He told that he thinks the bull market of the XLM has already started. It formed a beautiful base during September and has been in an upward trend since then.

Also, Hellman said that there would be some short-term volatility because of some crucial fundamental news. That news is including the elimination of network inflation and 55 billion Stellar token burn. But once the dust has dissipated, it will resolve anyway upward. Today’s drop in Stellar’s price may be an opportunity for some investors. If Nick Hellman is right, we could see Stellar perform well in the coming weeks.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.

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