Stellar Lumens Looks to Build on October Gains

Summary:

The price of Stellar Lumens was slightly lower last week but the coin has performed well from lows in October near $0.255.

The price of Stellar Lumens was slightly lower last week but the coin has performed well in October and is now looking to build on those gains.

Stellar has seen its price gain by over 50% in October and is now looking to add to a recent high near $0.40. The project has recently signed a deal with the Canadian central bank to develop a Central Bank Digital Currency (CBDC). The news surrounding the stablecoin, which would be pegged to the Canadian Dollar using the Stellar network, follows a recent deal with Moneygram. Stellar’s market cap has since improved from $6.4bn ahead of September to a recent high of $10bn.

XLM Price Forecast

There is still a chance of further gains in the price of Stellar Lumens if the Bitcoin rally continues. The September highs near $0.42 are in reach and would be the resistance for Lumens. The current price action is showing a support base around the $0.37 level.

However, if we talk about the long-term price action then the recent deals with the Canadian central bank and Moneygram are maybe a headwind for Stellar Lumens. Signing deals with players in the existing financial system only removes the potential for Lumens adoption. The project is showing that it wants to be a service provider rather than a serious currency alternative. In the near-term Stellar will look to the recent highs in May at the $0.80 level.