Stellar Up By 14.66%. Time To Buy XLM Coin?
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The native cryptocurrency of the Stellar network XLM is making a quick recovery from its downtrend.
Although the asset has been down for weeks, its recent bullish signs have given hope to investors that want to buy XLM.
This article provides an analysis of Stellar’s projected growth and its prospects for the future.
The XLM Token Of The Stellar Blockchain
Stellar is an open-source blockchain platform focused on facilitating cross-border payments.
The network was launched in 2014 by Jed McCaleb, a co-founder of Ripple.
Stellar is aimed at helping financial firms connect through blockchain technology, although its initial goal was to boost financial inclusion by reaching the world’s unbanked.
XLM powers the Stellar blockchain network and serves as a bridge that makes it cost-effective to trade assets across borders.
The XLM tokens are not mined like cryptocurrencies like Bitcoin.
100 billion XLM coins were minted when the Stellar network first launched.
However, the tokens were destroyed by half in 2019, leading to the now roughly 50 billion XLM in existence. The circulating supply is about 23.4 billion tokens.
The Stellar network uses the Stellar Consensus Protocol (SCP). This SCP operates according to four properties: freedom of participation where no one has all or majority of the decision-making power, low latency, freedom of trust, and safety.
The Stellar blockchain is decentralized and isn’t controlled by any third party, despite being managed by the Stellar Development Foundation (SDF).
Stellar has been referred to as a Ripple fork because it was originally based on the Ripple Labs protocol. While Stellar and Ripple share many similarities, McCaleb says the goals of the SDF are different from that of Ripple.
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XLM Price: Bearish To Bullish?
While the XLM price has been going down for weeks, things appear to turn around for the altcoin. But is this enough encouragement for investors looking to buy XLM?
XLM started the year trading at only $0.127. By the end of January, XLM had surged to $0.302. By February, the asset was trading at $0.527. After a series of lows, XLM continued its climb to $0.636 on April 14. However, the token plunged to $0.450 on April 23.
Things started to pick up again for XLM in May when it reached its all-time high price of $0.73, but this changed when the crypto market crashed. By the end of May, XLM had fallen to $0.39.
The price of the token continued and dropped further to $0.249 on June 26. The present surge in the value of the XLM asset is one of its first recovery states after a series of downturns.
At press time, XLM trades at $0.253, up by 14.66% in the last 24 hours, according to CoinMarketCap. The coin is ranked at number 17 on the trading chart with a market cap of $5 billion.
XLM’s Technical And Fundamental Analysis
The XLM’s price may strengthen and go upwards in the upcoming days as the indicators on the technical chart predict a bullish trend. XLM price currently trades above the 20-day and 200-day moving average.
The 200 MA line is at $0.248, while the 20 MA is at $0.251, emphasizing the bullish trend. The cryptocurrency’s relative strength index (RSI) on the charts is at 63.30. This signals that the asset is heading to the overbought zone on the chart, so now might be the time to buy XLM.
Looking at analysts’ predictions, Wallet Investor believes that XLM would hit $0.5011 in a year and $1.50 in the next five years. DigitalCoin’s forecast is a bit lower. According to the site, XLM would hit $0.915 in the next five years.
XLM’s fundamentals show that the non-profit organization behind the Stellar network, the Stellar Development Foundation, has been working.
Recent Bloomberg reports suggest that Stellar is considering acquiring remittance firm MoneyGram. People familiar with the matter say Stellar has partnered with private equity group Advent International to acquire the money transfer firm.
Although the news is yet to be confirmed, however, if the acquisition goes through, this might pump the XLM price higher and push more investors to buy XLM.
The Stellar network, just like Ripple, is also heavily invested in the development of central bank digital currencies (CBDCs). Numerous companies are competing to work on CBDC projects, and Stellar happens to be one of them.
Earlier this year, the SDF announced it signed a deal with Ukraine’s Ministry of Digital Transformation to work on both a CBDC and a virtual asset infrastructure.
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