Stellar price slipping lower as users prepare to vote on new upgrades
- Stellar protocol introduces a new upgrade to its core protocol
- The community is expected to vote on a set of new network updates this week
- The buyers failed to recover losses after the digital asset lost over 10% last week
Stellar (XLM) price is trading in the red this week as well after the digital asset lost over 10% last week. The Stellar project rolled out an upgrade for its core protocol and the community is now preparing to vote on a set of new network updates this week.
Fundamental analysis: An important vote ahead
Stellar protocol introduced a new upgrade for its core protocol. As a follow up, the community is now preparing to vote on new network updates that are expected to bring new features to exchanges. More precisely, new upgrades will provide better control over how cryptocurrencies are traded on-chain.
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The voting will take place later this week and users that are running a Stellar node will be able to vote for or against passing a raft of proposed upgrades – known as Protocol 13. The updates are meant to develop a new authorization function for exchanges to implement local regulations.
“Often, issuers of regulated assets want customers to be able to trade their assets, but they also need to exert a high level of control over who can hold them, how much they can hold and under what conditions they can sell or buy more,” the Stellar Development Foundation (SDF) wrote in a post.
If the upgrade gets a pass, exchanges and other entities will be able to enforce new conditions for every asset traded on their platforms. This rule is known as “the fine-grained control”. The current regulations already let exchanges keep users from buying a specific asset, but it can also block any other authorized orders that the user may have already placed but haven’t been settled.
“Protocol 13 introduces a new flag that allows you to revoke authorization while maintaining orders on the books, which makes it easier to tokenize regulated assets like securities,” Stellar wrote in a post.
“With fine-grained asset control, an issuer of a regulated asset can set the asset to require the new kind of authorization … and when a user wants to make a payment or new offer, the issuer can check to see if it’s allowed given regulation.”
Last month, Invezz reported that Stellar Development Foundation made a $5 million-large investment into a wallet provider known as Abra.
Technical analysis: Sideways trading
Stellar price is trading mostly sideways, although the sellers seem to have an upper hand. The bias is still to the downside as the buyers have failed to recover losses recorded in the last week when XLM/USD lost over 10%.
The zone around $0.074 should be seen as resistance in case the buyers turn the momentum around. On the other hand, the $0.065 mark hosts a 1-month high, while the $0.060 is a critical support in the short-term and a level that may attract buying interest in Stellar due to the attractive risk-return ratio.
Stellar price is slipping lower as the buyers struggle to keep the price action above $0.070. In the meantime, the Stellar project introduced an upgrade for its core protocol last week, before the community votes on a set of new network updates in the coming days.