Stellar jumps 30% after supply reduction; where is it heading next?

Stellar Lumens' total supply got cut in half, triggering a nearly 30 percent price increase.

Now, based on technical analysis, XLM could be signaling a further advance.

On Nov. 4th, the Stellar Development Foundation shook the entire crypto community by announcing the decision to burn 55 billion Lumens, equivalent to over $4 billion.

Now, 12 billion XLM is left for the Foundation's operations, 6 billion for giveaways, and 12 billion for partnerships.

The significant supply reduction sent XLM's price through the roof, appreciating nearly 30 percent in the last 30 hours.

The sudden surge that XLM experienced took it to nearly hit the 200-day moving average on its 1-day chart.

This, in combination with a spinning top candle, indicates that XLM could correct before continuing the uptrend.

This is considered a continuation pattern that created after XLM surged to nearly $0.088, known as the flagpole, and was succeeded by the current consolidation period, known as the flag.

After getting rid of the inflation mechanism in XLM's network, SDF now decided to cut in half the total supply of XLM. The crypto community seems to have welcome the decisions as it can be seen in Stellar's market value.

It remains to be seen if the decision by the SDF is significant enough to push the price of XLM even higher.