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Stellar Lumens Price Has Lagged. What Next For XLM?

Stellar Lumens Price Has Lagged. What Next For XLM?

Last updated 30th Nov 2022
Disclosure
  • Stellar Lumens price has lagged the performance of other cryptocurrencies.
  • The next key support and resistance levels to watch are $0.0998 and $0.138.

Stellar price has lagged the performance of other cryptocurrencies. XLM, its native token, was trading at $0.1231 on Wednesday morning, which was about 23% above its lowest level this year. In contrast, Ethereum price has more than doubled from its YTD low.

Why is Stellar struggling?

Stellar is a leading blockchain project that was started by a co-founder of Ripple Labs. It is a project whose goal is to simplify how companies and people move money internationally.

Stellar works with leading companies in the financial services industry like Circle, MoneyGram, Wyre, and ClickPesa to simplify how they deal with cash. Last week, a company known as Bitwage started using Stellar to pay remote workers using USDC.

Stellar’s blockchain enables people to create digital representations of currencies like the US dollar, euro, and the Mexican peso.

Circle used Stellar’s blockchain to build its stablecoin which is known as USD Coin. USDC is the second-biggest stablecoin in the world with a market cap of over $53 billion.

As part of its use case, it is now possible for people to send USD Coin and withdraw the funds in a local MoneyGram agent.

Learn more about how to invest in Stellar.

XLM, also known as Stellar Lumens, is the native cryptocurrency for the ecosystem. By design, Stellar requires that all accounts hold a small amount of lumen at all times. The goal for having this coin is to prevent scam in the network. According to its website, Stellar has over 7 million accounts and has helped to process over 89 million payments.

XLM price has lagged the performance of other cryptocurrencies like ETH and Polkadot. This performance is likely because of the relatively low volume and the lack of major news about its ecosystem.

Stellar price prediction

XLM price dropped and found a strong support at $0.0998 in July. Since then, the coin has made a slower recovery than other cryptocurrencies. It has moved slightly above the 25-day and 50-day moving averages. Also, the money flow index (MFI) has moved slightly below the neutral point of 50.

Therefore, the coin will likely remain in this range as investors wait for a catalyst. A move above the resistance level at $0.1382 will signal that bulls have prevailed and push it sharply higher, On the other hand, a drop below the support at $0.0998 will signal that there are still more sellers in the market.

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.