The Stellar price has been left behind by the ongoing cryptocurrency rally. The XLM coin is trading at $0.3015, which is about 50% above the lowest level in July. The coin is also hovering near its highest level during the weekend. It has a market capitalization of more than $7 billion and is the 20th biggest coin in the world.
Stellar is a major blockchain project that is relatively different from other popular platforms like Ethereum and Bitcoin. Unlike Bitcoin, Stellar is not a currency. Instead, it is a project that helps people create digital representations of money. It then helps to simplify the remittance and cross-border payment industry.
This is a major industry that is valued at more than $200 billion according to analysts at McKinsey. The biggest players in the industry are centralized firms like PayPal, Wise, and Western Union. Therefore, Like Ripple Labs, the Stellar Foundation hopes to disrupt the industry using blockchain. Along the way, it hopes that it will cut costs and increase the speed of transactions.
As part of this growth, there are reports that the seven-year-old Stellar Foundation is considering spending more than a billion dollars to acquire MoneyGram. MoneyGram is a firm that was started in 1945 and is one of the leading players in remittances. It was even once eyed by Ant Financial, the company started by Jack Ma.
Stellar allows transactions using the Stellar Consensus Protocol (SCP), which is built on the Federated Byzantine Agreement (FBA). Lumens or XLM is the native token for the Stellar ecosystem.
The four-hour chart shows that the XLM price has been in a slow upward trend. Along the way, it has formed an ascending channel. The current price is slightly above the middle line of this channel. It is also being supported by the short and longer-term moving averages while the MACD is above the neutral line. A closer look also shows that it has formed an inverted head and shoulders pattern.
Therefore, I suspect that the XLM price will continue the bullish trend as investors target the next key resistance at $0.4, which is about 40% above the current level. This bullish view will be invalidated if the price declines below the key support at $0.025.