The XLM price is in consolidation mode as traders wait for the next catalyst. The Stellar Lumens coin is trading at $0.2660, which is slightly below this week’s high of $0.2853. As a result, its ranking has dropped to 19, which is substantially lower than where it was a few weeks ago.
The XLM price was in the spotlight last week when it emerged that its parent company was teaming up with Advent International to purchase MoneyGram.
If the deal is confirmed, it would value the company at more than $1.2 billion considering that the firm has a market value of more than $1 billion. It will also be the biggest purchase of a company by a crypto firm. It is also notable since MoneyGram had a relationship with Ripple Labs before the new investigation started. Therefore, the coin’s price is likely wavering as investors wait for confirmation of the deal. If it happens, XLM will likely benefit from MoneyGram’s strong network.
Meanwhile, the XLM is struggling as investors react to news from Ripple. In a statement on Wednesday, Ripple Labs said that it would expand to Japan by partnering with SBI International. While Stellar Foundation is not involved, the news is notable since the two firms have the same goal. In fact, Stellar’s founder was a co-founder of Ripple.
Therefore, these events provide a sign that the cross-border industry is maturing and gaining more users. Notably, the events come a few weeks after Stellar Foundation published an encouraging quarterly report.
The XLM price has been in a tight range as shown in the four-hour chart. It shows that the coin has formed a bullish flag pattern that is shown in black. In technical and price action analysis, this pattern usually provides a sign that the price will have a bullish breakout. The coin is also hovering near the 50-day and 20-day volume-weighted moving averages (VWMA). At the same time, the MACD seems to be forming a bearish divergence pattern.
Therefore, the coin will likely make a major move upwards as investors target the next key resistance at $0.35. In the next few months, we can’t rule out a situation where it jumps to $1. This will be confirmed if it rises above the all-time high of $0.80.