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- 1 The price of the XLM/USD pair rose by 69.64% since the start of the year.
- 2 A rise in social dominance could lead to another spike in the future.
Stellar is a decentralized blockchain network, it allows users and businesses to send money and other assets across the world. Stellar has many useful use cases, such as remittances, micropayments, mobile money, and mobile banking.
Its history was fascinating, as Stellar was founded by Jed McCaleb, who was co-founder of Ripple, and Joyce Kim in 2014. This project initially started as a fork of the Ripple protocol but it has been rewritten later from scratch to address some of the perceived limitations of the Ripple system.
As of now, the Stellar Development Foundation (SDF), which is a non-profit organization based in Delaware, is in charge of developing and promoting the Stellar network.
Basically, It was designed and aimed to enable very fast and cheap cross-border transactions, without depending on the traditional financial intermediaries. Furthermore, the network’s native cryptocurrency is the lumen (XLM), which is used as a strong digital asset for its network operations.
In addition, the lumen (XLM) plays a very special role in the Stellar network, as every account needs to hold at least a small amount of lumens at all times only to meet minimum balance requirements and pay transaction fees. This requirement was introduced to prevent any kind of bad or frivolous actors from spamming the core network with useless and unimportant transactions.
Additionally, because everyone on the network needs lumens, it could act as a revolutionary bridge between illiquid assets, making it convenient to move money between the users.
Therefore, it can be said that its main advantage is its strong ability to support the very unique cross-border transactions in different currencies, making it easier and benefitted option for individual users and institutional businesses who wish to transfer funds across borders fast and flawlessly.
Moreover, Stellar can also support in the creation of new assets, such as digital currencies, could be security tokens, and even it could assist in real-world assets like commodities or real estate, as well.
What Stellar Price Chart Shows In 1-D?
The XLM/USD current market price is $0.1210 with an intraday loss of 0.17%.
On analyzing the chart on a daily time frame, the price of the XLM/USD pair rose by 69.64% since the start of the year. It had a strong surge in upward movement, but it met resistance at $0.1960, which attracted more sellers.
The price then started forming lower highs and lows and turned the asset sideways as the range tightened as well, until it broke out of it with another surge.
This rally on the XLM chart is probably most likely to continue since it has formed a bullish pattern known as a declining wedge in the longer period.
Bulls are expected to harness strength and break the resistance level and surge from the current level.
Moreover, XLM might surge strongly from the current level. The next possible target could be $0.1400. On the contrary, if it fails and slips, then it could decline to $0.1000.
Stellar is currently trading above the major exponential moving averages, which are supporting the price momentum.If more buyers enter the market, the XLM price would most likely to increase more by creating an uptrend.
What Stellar’s Social Dominance Highlights Against the UNI Price
Stellar’s social dominance reflects how much people are talking about it, valued, and pursued in the cryptocurrency community.
This chart shows that social dominance has remained stable over the past two months. However, as social dominance increases, the price of XLM may also increase as more people become interested in buying and owning XLM.
Santiment data also shows that the dominance increased in July and September 2023, and the price followed suit. This suggests that a rise in dominance could lead to another spike in the future.
Technical Levels
Support Levels: $0.1000
Resistance Levels: $0.1400
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
