- Stellar Lumens price has been in a tight range in the past few days.
- SDF will launch Soroban smart contracts testnet to Stellar network.
Stellar Lumens price has moved sideways in the past few days even as Bitcoin remained above $27,000. The XLM token was trading at $0.1185 on Wednesday, where it has been stuck this week.
Major Stellar upgrade
Stellar is one of the biggest players in the blockchain industry. Like Ripple, Stellar’s goal is to disrupt the cross-border payment industry using blockchain. Over the years, developers have used Stellar in different ways.
For example, MoneyGram makes it possible for people to send USD Coin, the second biggest stablecoin in the world. Recipients can then receive the funds in one of the company’s stores. These transfers are cost-efficient and faster.
Stellar Lumens price will be in the spotlight on Wednesday as the developers make one of the ‘most complex’ protocol upgrade on record. Stellar network will upgrade to Protocol 20, which will introduce support for Soroban smart contracts in a testnet ecosystem. This upgrade will happen on September 20th.
The testnet will help developers build applications in a testing environment. After that, the soroban smart contracts will move to the mainnet. For starters, soroban is a rust-based smart contracts platform that enables developers to create decentralized applications (dApps). This was the big news that SDF teased, which we wrote about here.
The concept behind Soroban is simple. Developers can create DeFi applications that then leverage Stellar’s technology. It is a faster and cost-effective alternative to Ethereum, the biggest smart contract platform in the world.
Read more: How to buy Stellar.
Stellar has also created a $100 million Soroban Adoption Fund that provides users with the resources they need to build.
It is unclear why Stellar’s XLM coin has reacted mildly to the upcoming network upgrade. A likely reason is that the upgrade has already been priced in the current price. Also, investors believe that the upgrade will not have a major impact on Stellar’s ecosystem for now.
Stellar Lumens price forecast
The daily chart shows that the XLM crypto price has been in a strong bearish trend in the past few weeks. It has dropped from a high of $0.1945 in July to the current $0.,1200. As it dropped, Stellar found a strong support at $0.111, where it struggled to move below since August.
Stellar has also remained below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has remained below the neutral point at 50. Therefore, the outlook for Stellar Lumens is bearish, with the initial target being $0.1111. A break below that level will see it retest the next support point at $0.092.
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