Stellar price has stabilised and shows signs of recovery with price action moving upwards in a V-shaped manner
The cryptocurrency space promises to address myriads of issues in a wide range of sectors. So far, one can boil the areas of focus down to 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 Ripple Labs protocol fork designed to store and move money. Specifically, the network validates and settles cross-border transactions fast and cheaply.
Stellar allows users to create, send, and trade digital representations of all forms of money. It means a user can send Mexican pesos to Malaysia without facing the steep charges typical of the traditional currency exchange market.
At the center of Stellar’s fluidity is Lumens (XLM). Lumens or the Stellar coin powers the decentralised interactions over the network. You can trade XLM coins over various cryptocurrency exchanges, including Coinbase, Binance, and more. In this article, we present an analysis for Stellar price prediction in June 2021.
Stellar Lumens (XLM) Current Price
XLM is trading at $0.3392 as of June 8, 2021, which is 12.18% lower than the price 24 hours ago, according to CoinMarketCap. The market capitalisation is also down 12.17% to $7.844 billion compared to the last 24 hours of trading.
Nevertheless, the volume of XLM trades in the past 24 hours is up 24.08% to $795 million, signifying growing interest in the digital currency.
Lumens coming out of a correction that saw the price tumble from the yearly high of $0.7721 established on May 16. However, today’s price is 27,666.09% higher than the all-time low and 63.68% shy of the all-time high.
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Events That Might Move the Stellar Price in June
Protocol 17 upgrade
According to the Stellar Development Foundation or SDF, the three main use cases of the blockchain network are developing 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 exchanges. Early this month, the Stellar core developers successfully upgraded the network to Protocol 17.
The organisation outputs regular upgrades to the network to ensure it operates on the bleeding edge of blockchain technology. This new upgrade–Protocol 17, introduces a new feature called Asset Clawback. It enables developers to revoke assets when necessary, in compliance with regulatory requirements.
The Asset Clawback feature enables businesses to demonstrate that blockchain can operate within existing compliance demarcations.
Protocol 17 is a major statement by Stellar that indicates the intention to stay at the head of the pack when it comes to new finance. The news generated notable interest in the market on June 1, sending the crypto in a 15.24% climb in intra-day trading. Although the token has fallen 15% since then, there is a chance for a sharp recovery when the market begins to digest the significance of the network upgrade.
Partnership to boost the unbanked
If there is one area that Stellar Foundation has shown excellence is using anchoring its vision on partnerships. The Stellar blockchain empowers various organizations, including Circle, to deliver their services. For instance, Circle uses the Stellar network to run a global payment system, as do ClickPesa, SatoshiPay, and Bitbond. All of these businesses are titans in their region of operation.
Last month, Circle announced a partnership with Tala and Visa, targeting millions of unbanked people across the globe. Tala is a leading FinTech operating primarily in the developing world, aiming to connect unbanked people to the global financial system.
Tala intends to offer payment cards to its users who will transact 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, hence breaking down existing barriers that limit access to finances for up to 3 billion people worldwide.
News of the partnership came out on May 5, 2021, but the implementation face will catch steam this month. Therefore, one hopes that the market will respond in kind by shifting buyers to XLM within the month.
Strategic investments by the Stellar Development Foundation
Apart from running an open blockchain network, the Stellar Development Foundation supports startups through the Stellar Community Seed Fund program. Primarily, the fund supports projects that promise to expand the reach of the Stellar ecosystem.
Two promising businesses have received funding from the program so far this month. In one case, the SDF fulfilled the promise to invest $15 million in AirTM. AirTM is a Mexican peer-to-peer exchange and digital wallet service provider that operates at the interface between traditional banks and blockchain technology.
According to Denelle Dixon, the SDF CEO and Executive Director, the AirTM cash injection aims to open up Latin American markets to Stellar. AirTM will use the investment to transform the region’s “fragmented banking networks” by leveraging the Stellar network.
The Stellar Development Foundation also extended an R&D grant to SatoshiPay. According to SatoshiPay’s blog, the funds will enable the development of Pendulum, “a suite of open, decentralized protocols on which smart contracts can be developed and executed.” Pendulum will act as a secondary layer of the Stellar network that connects users to Polkadot and Ethereum, both of which are smart contract platforms.
In both cases, Stellar gets the chance to sell its vision to more people and across more regions. The ultimate benefit of the investments is an increase in Stellar’s user base, hence allowing XLM to flow through more wallets.
Stellar Price Forecast
The XLM price has stabilised since it crashed almost 61% from the yearly high on May 16 and bottomed out at $0.3047 on May 23. Although the price action is recovered almost immediately in a V-shaped manner, the market price has been range bound for over two weeks.
The good news is that the sellers are thinning, and as shown below, the RSI looks to be bouncing in the opposite direction. Also, the MACD suggests that a direction change is in the works, going by the volume of XLM sold.
XLM 4-hour price chart. Source: TradingView
Drawing the Fibonacci retracement on the XLM 4-hour chart exposes the 23.6% level as the most critical resistance. The market has been ranging below the level since May 27, save for two instances of unsuccessful price rebound.
XLM daily price chart. Source: TradingView
It helps to note that the past two weeks have been challenging for the entire crypto market. For instance, Bitcoin is down 9.8% in the past week. There is a strong likelihood that the market-wide negative sentiment is adversely impacting XML’s price action.
Nevertheless, Stellar price analysis reveals that XLM will swing up to $0.561960 within June 2021 if it breaks above the 23.6% Fib retracement level. The $0.561960 price point also happens to be the 50% Fib retracement level, slightly above XLM’s last high.
Please note, the above is a purely opinion-based piece, based on relevant data available. It should not be deemed as direct investment advice.