(Updated October 10, 2020) 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 October 10, 2020
The Stellar Lumens/Tether (XLM/USDT) trading pair is showing the formation of a falling wedge that started in July this year. Since that moment, XLM has touched three times the bottom line and three times the upper line.
Now, the virtual currency was able to break above the upper line and it reached a price of 0.07694 USDT per XLM. In addition to it, the next levels could be 0.087 USDT and 0.093 USDT following the Fibonacci retracement tool.
Furthermore, it is also possible we could see the Stoch indicator with a great possibility of moving higher in the next few days.
The analyst that is analysing the XLM/USDT trading pair sees that XLM could be falling towards the 0.07227505 USDT level in the coming days. At the moment, we see the market moving in the right direction. Another level could be close to 0.073 USDT per XLM.
This is what the trader calls the “demand zone” and it could be a good place to enter the market as shown by the trader with the “target zone” tag. Additionally, the trader shows there is a bearish breakout in the MACD indicator. If the coin would have to move upwards, the next target is 0.766 USDT.
Stellar Lumens in the XLM/USDT trading pair has been growing since March with two touches on the trend line. The virtual currency is maintaining its position and continuing to move higher. The market will be decisive in order for it to be able to register further gains in the future.
At the same time, the analyst explains that the oscillator indicator is looking very good with the potential of hidden bullish divergence. This could mean possible upside continuation for XLM. In addition to it, the analyst mentioned that if the trend line holds the price from a further drop, we could see new upside moves.
XLM continues to be in a correction that started a few weeks ago. The buy zone is going to be close to 0.08687 considering this level worked as support and resistance in the past. The digital currency has been in an uptrend since March 2020 when the entire financial markets fell after the expansion of the COVID-19 crisis.
If the trend continues, the next resistance level for the XLM digital asset would be the 0.16409 region. This worked as a resistance level in the past and could behave in this way this time as well. Now, XLM is being traded close to 0.09588.
The XLM/USDT trading pair could be breaking a dynamic daily trendline on the four-hour chart. The price is also showing the formation of an inverse head and should pattern that could end up with a breakout of XLM pushing it to higher prices.
The digital currency could be breaking out around $0.107 and $0.109. If that works as a support, then XLM could move even higher as Plancton0618 shows. Finally, in the 4h chart, we see the inverse head and shoulder pattern that could be breaking out confirming the previously mentioned movement towards $0.107 and $0.109.
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.