(Updated January 16, 2021) Stellar is an open-source blockchain platform that connects payment systems, banks and the people. It’s designed to move money quickly, reliably and at meager fees. Launched in 2014, the usability of Stellar has seen it rise the crypto charts rapidly.
Stellar (XLM) hasn’t been performing that well over the past few days, however the recent update of the stellar blockchain stellar-core v11.4.0., promises to bring about the much-needed growth of XLM. Nonetheless, 2018 was a very good year in terms of fundamentals with network activity and partnerships growing and playing an important role in the development of this digital asset.
Traders, experts, and even our technical analysis indicate that we have a reason to stay optimistic about the price of XLM. In this piece, we are going to take a look at some of the reasons that could push the price of XLM and other altcoins higher as we move closer to the final quarter of the year. XLM is currently occupying the 14th position on the coin charts with a market cap of just over $1.5 billion.
Back at the end of 2019, the Stellar Foundation reduced XLM’s supply by 50%, which pushed XLM’s price 20% higher. Despite Stellar burning half of its supply, it has received a lot of criticism from other analysts, experts and figures in the crypto market.
The Stellar Foundation is also working with non-profits providing funding for their projects and promoting the usage of virtual currencies.
Experts’ XLM Predictions 2019, 2020, 2021, 2022
There has been good news for all Stellar (XLM) holders, as experts predict a bright future for the coin. Below are expert opinions on why Stellar Lumens’ price will surge shortly.
A panel of professionals from the cryptocurrency sector, including CEOs, and the famous bitcoin developer, Jimmy Song, predicted massive gains for Stellar Lumen’s price. The panel stated that XLM could rise by as much as 260% from its current price, by the end of 2019. All panel members expressed high hopes for the coin’s price in the coming months.
WalletInvestor expects XLM price to rise to $0.2 before dropping to $0.01 by the end of the year. However, the price is expected to grow again to $0.2, and over the next two years, the price of XLM will range between $0.01 – $0.02.
TradingBeasts predicts that XLM will maintain a price of $0.06 until 2021. But, by May 2021, it will start to rise to reach $0.11 by the end of 2022.
Other factors driving XLM price include;
Creation of Interstellar
In another case that highlights the growing usability of the stellar network, Chain, a blockchain startup was recently acquired by Lightyear, the for-profit branch of the Stellar Development Foundation. The acquisition led to the creation of a new entity called Interstellar.
Since being founded in 2014, Chain has managed to raise over $40 million in private capital. It has also worked with companies such as Visa, Nasdaq, and Citigroup. The startup describes itself as a cryptographic ledger system that makes financial services smarter, more connected and more secure.
Interstellar will be headed by Adam Ludwin, the former RRE Ventures partner and founder of Chain. He will serve as the new project’s CEO while Jed McCaleb, Stellar and Ripple Cofounder will serve as the CTO of the project.
Commenting on the acquisition of Chain by Stellar, Ludwin said:
“All of the clients that we have now have effectively shifted from using a traditional database model to using a tokens model, issuing assets on a local environment. By partnering with Stellar, you can fire an asset to another institution.”
Now, it seems Chain’s push for enterprise blockchain adoption is the reason why Stellar saw it fit to acquire the company. In a statement McCaleb said:
“Chain’s team has led the market for enterprise adoption of blockchain technology. It’s a critical component of building a future where money and digital assets move over open protocols.”
IBM’s Launch Of A Stellar Backed Blockchain World Wire Payments System
The good news keeps coming the Stellar way, and the recent adoption of the network by IBM promises to boost the fortunes of XLM. In September, International Business Machines Corp. announced it was launching the Blockchain World Wire, a blockchain-based payment system that is backed by the Stellar protocol.
The platform promises to revolutionize cross-border payments according to IBM. It will operate similarly as Ripple’s blockchain settlement systems which use XRP to transfer large amounts of money across borders with little to no fess.
When the platform starts to operate officially, it will facilitate instant clearing and settlement of all transactions through the Stellar blockchain network.
IBM describes the new product as:
“IBM Blockchain World Wire, the new financial rail that can simultaneously clear and settle cross-border payments in near real-time. Integrating with your existing payment systems, you can replace costly opacity with affordable transparency – and that can bring greater financial opportunity to all.”
In addition to the work with IBM, It is also being rumoured that Fidelity may opt for the XLM blockchain in moving digital assets across its platforms. Although not confirmed, it must be said that many financial market price moves are defined by rumours.
If such a move came to pass, it would boost XLM price significantly, potentially even to the $1 level.
Addition On BitGo
At the start of October, BitGo, one of the leading crypto startups that offers custodian solutions announced that it was adding XLM and Dash on its list of cryptocurrencies. Customers can now generate wallets for both starting this month.
BitGo is one of the world’s most secure wallet providers. The new additions make it exciting for investors of both cryptocurrencies.
Mike Belshe, the CEO and founder of BitGo, said that the additions were due to their unique features that offer some advancements, especially around payments.
He adds that Stellar was a clear pick for the Startup as it narrowly focuses on providing global payments for more consumers. It’s something that differentiates it from Bitcoin. Unlike BTC which acts as a store of value, XLM focuses on transactions.
In addition to BitGO, positive exchange-based news came in the listing of the XLM token on the Hong-Kong based Coinsuper exchange.
Stellar Lumens (XLM) Price Prediction TradingView Analysis Updated January 16, 2021
For XLM we see the virtual currency is currently trading in a descending wedge formation. This could end at the 0.2285 USDT price per XLM level. At the same time, the analyst considers that we have a 61.8% Fibonacci pullback that indicates a potential reversal to the upside. This could push the virtual currency to 0.3947.
Thus, the basic set up for XLM/USDT is to open a buy limit order at 0.2810 and create a target profit for 0.3947. The stop loss is at 0.2511. The goal is to risk as little as possible and get exposure to a very profitable trade if it gets executed correctly. Nevertheless, this is for educational purposes only, as the analyst explains.
The XLM digital asset continues to correct the strong growth it experienced during the last months. XLM price has seen that sellers formed a clear channel of price movement. This is also an attempt to break the lower trend on December 24.
The analysis shows that the price of XLM has been falling sluggishly in recent days. This could be the moment to think of a new growth trend for the coming days. Strong buyers could enter at $0.12 and the first targets that the analyst shared include $0.146 and $0.16. Some investors from XRP could also move to the XLM digital asset.
For the XLMUSDT trading pair, we see that the analyst is bullish on this pair because it could be adopted by central banks in the future. He considers that there is also a large possibility for it to move to 0.21 and 0.23 in the near future. Nonetheless, he didn’t explain what or how central banks could adopt this virtual currency.
As we can see, at the time of writing, the XLMUSDT trading pair is currently at 0.18579 XLM. This could push the digital asset o.24 and even further as it is shown in the chart shared by the analyst.
XLM has been in a very bullish period. However, now it seems to be experiencing a correction. The analyst suggests that it will be important to watch Ethereum (ETH), Bitcoin (BTC) and also the RSI trend changes.
Moreover, he mentioned that as well as XRP, XLM depends heavily on technical indicators. A good strategy could be to take profits and re-buy for hodlers. If not, the best is to take profits and move to another digital asset.
It is also important to look for a bounce on the 200 SMMA on the 4 hours chart. This could push the virtual currency to 0.27 and 0.28 in the near future.
XLM is getting ready to reach a monthly resistance level, according to the analyst. The price has bounced on the weekly dynamic trendline and the price had a breakout from monthly resistance and daily as well. Now it is time to wait for a retracement and we could set up a nice order to move higher.
On the charts, we could see that the digital currency could move to 0.118 USDT per coin and continue moving higher in the coming weeks and years. Everything will, of course, be related to how the entire crypto market behaves in the coming days and weeks.
Want to learn more about Stellar XLM? Read our Beginner’s Guide to XLM, complete with a history of the project and fundamentals of how the coin provides value. A search for Stellar on our site will bring up the latest XLM articles like Weiss Ratings giving Stellar XLM a “buy” rating.
If you’re interested in buying Stellar, you can learn how to buy XLM on Binance, our suggested exchange for new cryptocurrency investors.