Stellar and XLM token: Let us dig deeper
Stellar is a blockchain project that is in the money transfer industry. Companies in the finance sector can use its platform to simplify how they move money locally and internationally. It works by helping these firms create digital representatives of fiat currencies like the US dollar, euro, and the Mexican peso. Some of the companies that have embraced Stellar’s blockchain are MoneyGram, Circle, and BitG.
Stella’s cryptocurrency is known as Lumens or XLM. At the time of writing, the coin was trading at $0.2090, which was about 30% above its lowest level in 2022. Its market cap was over $5.2 billion, making it the 30th biggest coin in the world. At its peak, it was among the top 15 of the biggest digital currencies.
Stellar Lumens have a supply limit of slightly above 50 billion coins. Those in circulation stand at 24 billion. It has a fully diluted market value of more than $10 billion.
Stellar (XLM) price history and technical analysis
Stellar was launched in 2018 by Jed McCaleb, who is known for being a co-founder of Ripple. At the time, the coin was trading at $0.4654. Like most cryptocurrencies in 2018, the price of XLM declined sharply because of the actions of the Federal Reserve, which made four rate hikes. It fell to a low of $0.0270 in 2020 and then started a remarkable rally that pushed it to an all-time high of $0.7976.
On the daily chart, the coin has dropped below its all-time high. It also crossed the important support at $0.4686, which was its initial price. It has also moved below the descending trendline shown in black. Also, it has formed a strong support at about $0.166 and moved slightly above the 25-day and 50-day moving averages. Therefore, the coin will likely keep rising as bulls target the resistance level at $0.30.
Stellar (XLM) price prediction for a year
Stellar has struggled in the past few months as concerns about its usage statistics grows. As a result, it has crashed by over 73% from its all-time high, making it one of the worst performers.
One of its key strong point is Circle’s USD Coin, which has grown to become the second-biggest stable coin in the world. In 2021, Stellar Foundation partnered with MoneyGram to ensure that people can withdraw USDC in its local agents. It is still unclear about the volume of these transactions.
According to Long Forecast, XLM is still in a bearish trend and that it will end 2022 at about $0.19, which is about 10% below the current price. Other statistical estimates are a bit optimistic. For example, Coin Price Predict expects that it will rise to $0.26 in 2022. Wallet Investor estimates that the coin will end the year at about $0.32.
Stellar (XLM) Price Prediction for 2025
Using the Modified Schiff Pitchfork tool, we can estimate the potential performance of XLM by 2025. If the bullish trend continues, there is a possibility that the coin will rise to about $2.33. The upper limit of this estimate will be at $20.
The future performance of Stellar will depend on the number of companies that embrace its technology to facilitate its money transfer services. Also, the volume of its transactions and whether the Fed will maintain a hawkish tone will play a role in all this. Long Forecast estimates that the XLM token will crash to $0.08 in 2025 while Price Prediction sees it rising to $0.76.
Stellar (XLM) in Questions & Answers
Is Stellar Coin real?
Yes. Stellar is a real coin. It is widely owned by investors and it has a market value of over $5 billion.
Will Stellar reach $10?
Stellar is trading at $0.2, meaning that it needs to have a strong rally to get to $10. While this is a possible situation, it is highly unlikely to happen.
Should I buy Stellar Coin?
Stellar has not been a good investment in the past few months since its price has crashed by over 70% from its all-time high. Therefore, XLM is a relatively risky coin to buy for now.
How much will be Stellar be in five years?
It is hard to predict where Stellar will be in five years. A conservative estimate is that the coin will rise by 3 times, bringing its value to $0.65.
Where do I buy Stellar?
Stellar is one of the biggest cryptocurrencies in the world. Therefore, it is widely offered by leading companies like Crypto.com, Huobi, and Kraken.
This article represents the views of the author. Cryptocurrencies are highly speculative assets and the author will not be held liable for any losses.
