The Stellar price has lagged the rest of the cryptocurrency industry in the past few days. Its price has declined in the past three consecutive days and is currently trading at $0.3700. This price is about 13% below the highest level during the weekend. As a result, its total market capitalization has declined to more than $8.7 billion.
XLM fundamental analysis
Stellar is a blockchain project that is relatively different from projects like Ethereum and Bitcoin. The network is primarily in the cross-border money transfer industry. It helps people create digital representations of currencies like the US dollar and the euro.
Stellar also helps developers to build products like stablecoins. For starters, a stablecoin is a cryptocurrency that is backed by fiat currencies like the US dollar and the euro. Tether is the best-known stablecoin.
The biggest stablecoin in Stellar’s ecosystem is known as USD Coin that was created by Circle. Today, all USDCs in circulation are valued at more than $32 billion. Indeed, Stellar Foundation recently entered a deal with MoneyGram in a bid to simplify how people send USD Coins.
Stellar price has struggled as investors wait for the upcoming Protocol 18 vote that will happen on November 3rd. This will be the most pivotal vote since the network was started a few years ago. The vote will bring the capability of creating Automated Market Makers (AMM) using Stella’s technology. As such, this will enable people to build consumer-facing products.
The Stellar Foundation network has also grown rapidly in the past few months. For example, they invested $45 million in Tala. This investment was part of a $145 million fund that will enable Tala to build products to help people borrow, invest, save, and spend.
Stellar price prediction
The daily chart shows that the Stellar price has jumped to an important resistance level. The XLM price reached a high of $0.4260, which was the highest level on September 6. As such, the coin has formed a double-top pattern. In price action analysis, a double-top pattern is usually a bearish signal.
However, this pattern can also be viewed as a cup and handle pattern and that the current retreat is the formation of the handle section.
Therefore, since the price is above the 25-day and 50-day moving averages, there is a possibility that the price will resume the bullish trend. If this happens, the next key level to watch will be at $0.6015, which is about 42% above the current level.
Contributors
