Stellar’s price has stabilized and is showing signs of recovery with a price action moving upward in a V-shape.
The cryptocurrency industry promises to solve myriad problems across a wide range of industries. So far, one can summarize the areas of interest in improving financial payments and streamlining operations in non-financial sectors.
The blockchain-based project that stands out when it comes to financial payments is Stellar. The Stellar blockchain network is a fork of the Ripple Labs protocol designed to store and move money. Specifically, the network validates and settles cross-border transactions quickly and cheaply.
Stellar allows users to create, send and trade digital representations of all forms of currency. This means that a user can send Mexican pesos to Malaysia without having to pay the high fees characteristic of the traditional foreign exchange market.
At the center of Stellar’s fluidity is Lumens (XLM). Lumens or Stellar coin powers decentralized interactions on the network. You can trade XLM coins on various cryptocurrency platforms including Coinbase, Binance, and more. In this article, we present an analysis of Stellar’s price forecast in June 2021.
Stellar Lumens Current Price (XLM)
XLM is trading at $ 0.3392 as of June 8, 2021, which is 12.18% lower than 24 hours ago, according to CoinMarketCap. Its market capitalization is also down 12.17% to $ 7.844 billion compared to the last 24 hours of trading.
Nevertheless, XLM’s trading volume in the last 24 hours is up 24.08% to $ 795 million, which means increasing interest in digital currency.
Lumens is coming off a correction that has seen its price fall since the annual peak of $ 0.7721 set on May 16. However, today’s price is 27,666.09% higher than the all-time low and 63.68% lower than the all-time high.
Events that could move Stellar’s price in June
Protocol Upgrade 17
According to the Stellar Development Foundation or SDF, the three main use cases of the blockchain network are the development of global payment applications, micropayment services and asset exchanges.
Stellar has one of the most competitive platforms whose performance so far stands out when it comes to asset trading. At the beginning of the month, the developers of the Stellar core managed to move the network to the protocol 17.
The organization produces regular network upgrades to ensure it operates at the cutting edge of blockchain technology. This new upgrade, Protocol 17, introduces a new feature called Asset Clawback. It allows developers to revoke assets when necessary, in accordance with regulatory requirements.
The Asset Clawback feature allows companies to demonstrate that blockchain can work within existing compliance demarcations.
Protocol 17 is a major statement from Stellar that indicates the intention to stay ahead of the pack when it comes to new finance. The news generated notable interest in the market on June 1, sending crypto up 15.24 % in intraday trading. Although the token has dropped 15% since then, there is a chance for a strong recovery when the market starts to digest the importance of the network upgrade.
A partnership to help unbanked people
If there is one area in which the Stellar Foundation has demonstrated excellence, it is that of anchoring its vision on partnerships. Stellar blockchain allows various organizations, including Circle, to offer their services. For example, Circle uses the Stellar network to manage a global payment system, just like ClickPesa, SatoshiPay, and Bitbond. All these companies are titans in their region of activity.
Last month, Circle announced a partnership with Tala and Visa, targeting millions of unbanked people around the world. Tala is a leading FinTech that operates primarily in developing countries and aims to connect unbanked people to the global financial system.
Tala intends to offer payment cards to its users who will make transactions with merchants accepting Visa cards. The payment network will use Circle’s USD Coin (USDC), a stablecoin built on the Stellar blockchain. The Stellar blockchain will store and facilitate the transfer of USDC across borders, breaking existing barriers that limit access to finance for nearly 3 billion people worldwide.
The news of this partnership was announced on May 5, 2021, but the face of implementation will pick up speed this month. One can therefore hope that the market will respond in the same way by moving buyers to XLM during the month.
Stellar Development Foundation Strategic Investments
In addition to running an open blockchain network, the Stellar Development Foundation supports startups through the Stellar Community Seed Fund program. This fund mainly supports projects that promise to expand the reach of the Stellar ecosystem.
Two promising companies have received funding from the program so far this month. In one case, the HOMELESS held his promise to invest $ 15 million in AirTM. AirTM is a Mexican provider of peer-to-peer exchange and digital wallet services that operates at the interface between traditional banks and blockchain technology.
Under Denelle Dixon, CEO and Executive Director of SDF, the injection of funds into AirTM aims to open up Latin American markets to Stellar. AirTM will use this investment to transform the region’s “fragmented banking networks” by building on the Stellar network.
The Stellar Development Foundation also provided an R&D grant to SatoshiPay. According to the blog from SatoshiPay, the funds will allow the development of Pendulum, ” a suite of open and decentralized protocols on which smart contracts can be developed and executed. “Pendulum will act as a secondary layer of the Stellar network that will connect users to Polkadot and Ethereum, both of which are platforms of smart contracts.
In both cases, Stellar has the opportunity to sell its vision to more people and in more regions. The final benefit of these investments is an increase in Stellar’s user base, allowing XLM to circulate in more wallets.
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Stellar price forecast
The price of XLM has stabilized since it slumped nearly 61 % from its annual peak on May 16 and bottomed out at $ 0.3047 on May 23. Although the price action recovered almost immediately to a V-shape, the market price remained in a range for more than two weeks.
The good news is that sellers are shrinking, and as the chart below shows, the RSI seems to be bouncing in the opposite direction. In addition, the MACD suggests that a change of direction is underway, based on the volume of XLM sold.
4-hour chart of the price of the XLM. Source : TradingView
By plotting the Fibonacci retracement on the 4-hour XLM chart, the 23.6% level appears as the most critical resistance. The market has been below this level since May 27, with the exception of two cases of unsuccessful price rebound.
Daily XLM price chart. Source : TradingView
It is worth noting that the last two weeks have been difficult for the entire crypto market. For example, Bitcoin lost 9.8 % in the past week. It is highly likely that negative market-wide sentiment will have a negative impact on the price action of XLM.
Nevertheless, Stellar’s price analysis reveals that XLM will be able to reach $ 0.561960 in June 2021 if it breaks above the Fib retracement level of 23.6 %. The price point of $ 0.561960 also happens to be the Fib retracement level of 50%, slightly above the last peak of XLM.
Please note that the above is a purely advisory article, based on the relevant data available. It should not be regarded as direct investment advice.
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