The Stellar price has been in a tight range in the past few days. The XLM token is trading at $0.3850, which is slightly below this month’s high of $0.4415. This price action has pushed its total market cap to more than $9.4 billion. It has also lagged other large cryptocurrencies like Bitcoin, Ethereum, and Binance Coin.
Stellar is a blockchain project that is in the payment niche. The network works to solve some of the biggest challenges in the world. It does this in several ways.
For example, it has a platform that enables developers to build stablecoins, which are cryptocurrencies backed by the US dollar. Circle has used Stella’s network to build its popular USDC Coin. Last month, Stellar Foundation announced a deal that will see people be able to withdraw USDC at most MoneyGram branches.
In addition to MoneyGram, Stellar is used by several key fintech companies like Flutterwave, Lobster, CoinQvest, Leaf, and Wyre.
The XLM price has struggled lately because of the fact that activities in the network has declined relatively recently. Data compiled by Messari shows that the volume of transactions in the network has dropped from an all-time high of more than $1.3 billion in May to less than $600 million. The average transfer value has also declined sharply.
The catalyst for Stellar price this week will be the Meridian virtual event that will start on Wednesday. This is an important event where the developers will discuss the current state of the network and explain its future.
Some of the top speakers for Meridian will be Denelle Dixon, the CEO of Stellar Development Foundation (SDF), Lin-Hua Wu of Google, Amr Shady of Tribal Credit, and Shivani Siroya of Tala. In the past, cryptocurrency prices tend to jump ahead of key events.
The daily chart shows that the XLM price has been in a tight range recently. The coin has struggled to move above the key resistance level at $0.4413, which was the highest level on September 5. This price is also along the neckline of the inverted head and shoulders pattern. In price action, this pattern is usually a bullish sign.
Stellar price is also being supported by the 25-day and 50-day moving averages. Therefore, while it is too early to tell, there is a possibility that the coin’s price will bounce back ahead or during the Meridian event. This outlook will be confirmed if the coin moves above the key level at $0.4413.
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