- Summary:
- What is the outlook of the Stellar Lumens as its recovery falters? We explain what to expect in the coming weeks.
Stellar Lumens price remarkable comeback has paused in the past few days as investors take a breather. XLM is trading at $0.2292, a few points below the weekend high of $0.2400. This price is about 70% below its highest level in 2021, while its market cap has dropped to about $5.7 billion. It is now the 30th biggest cryptocurrency in the world.
Stellar is a blockchain project governed by Stellar Development Foundation (SDF). It is a project built with the concept of money transfer in mind. Indeed, its founder was a co-founder of Ripple, a project that helps money transfer companies accelerate their remittances business.
Ripple and Stellar use two different models to tackle the money transfer challenges. For example, Ripple uses On-Demand Liquidity (ODL) to power its Ripplenet ecosystem. On the other hand, Stellar has tools that enable people to create digital representations of fiat currencies like the Mexican peso and US dollar. Further, the network has features that allow people to build stablecoins.
One of the most popular stablecoins built-in Stellar is USD Coin, valued at over $51 billion. With USDC, people can make instant payments globally. Furthermore, through its partnership with MoneyGram, it is even possible to cash out these payments in a local branch. Some of the top companies using USDC to boost money transfers are FinClusive and Wyre.
Stellar Lumens price prediction
The daily chart shows that the XLM price was in a deep downward trend since May last year. This drop saw it form a strong support at about $0.1695, which was the lowest level in January. Recently, the coin has joined other altcoins in staging a strong recovery that has seen it rise above the descending trendline shown in green.
The Stellar price has also crossed the 50-day moving average. It is also below the 23.6% Fibonacci Retracement level. Therefore, the coin will likely keep rising as bulls target this retracement point at $0.31. However, in the near term, a break and retest pattern could see it move back to the descending trendline at about $0.20.
