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XLM Price Prediction: More Downside Despite Stellar Partnerships

XLM Price Prediction: More Downside Despite Stellar Partnerships

Last updated 29th Jun 2022
Disclosure
  • Stellar Lumens has lost 84% of its value since May 2021.
  • Stellar Foundation has inked multiple partnerships recently.
  • Its partners include MoneyGram, FlutterWave, and Nium.

Stellar Lumens price has been in a strong bearish trend in the past few months as cryptocurrency prices retreat. The XLM price has crashed to $0.1277, which is close to its lowest level since January 2021. Its market cap has fallen to about $3 billion, making it the 24th biggest cryptocurrency in the world.

Stellar ecosystem growth

The XLM price has been in a downward trend after it peaked in May last year. This decline is in line with the performance of other cryptocurrency prices like Bitcoin, Ethereum, and Ripple.

Still, Stellar’s ecosystem has been growing in the past few months. For example, Stellar Foundation deepened its partnership with MoneyGram, the global payment giant. The partnership is making it possible for people to send USD Coin and withdraw in its locations. This is one of the biggest stablecoin to fiat payment processes around.

At some time last year, there were even rumors that the Stellar Foundation would partner with Advent International to acquire MoneyGram. These talks went nowhere and MoneyGram was acquired by another private equity company.

Learn more about how to buy Stellar Lumens.

This week, Stellar announced that it had partnered with Nium, a global money transfer company. The deal will enable companies to facilitate payments to 190 countries on Stellar. The process will improve upon the traditional correspondent banking system and make money transfers faster. In a statement, the head of Nium Crypto said:

“Our approach to modern money movement on Stellar innovates on legacy approaches well past their prime. It showcases both Nium’s global reach and real-time payment capabilities to a thriving network of business leaders and innovators.”

Other companies have partnered with Stellar recently. For example, Coinme recently announced that it will launch a USDC-powered global, borderless digital cash system. Other firms that have partnered with the company are Mercado Bitcoin, Novatti, Flutterwave, Shift Markets, and OkCoin.

XLM price prediction

The daily chart shows that the Stellar Lumens price has been in a strong bearish trend in the past few months. As the coin retreated, it moved below important support levels at $0.2021 and $0.1676, which were the lowest levels in January and March of this year.

Stellar has moved below the 25-day and 50-day moving averages, signaling that bears are in control. At the same time, the Relative Strength Index (RSI) has tilted upwards.

Therefore, the path of the least resistance for XLM price is bearish, with the next key support being at $0.0900.

Crispus Nyaga

Crispus Nyaga

Crispus is a financial analyst with over 9 years in the industry. He covers cryptocurrencies, forex, equities, and commodities for some of the leading brands. He is also a passionate trader who operates his family account. Crispus lives in Nairobi with his wife and son.