Stellar price prediction: XLM struggles to clear key hurdle

The Stellar (XLM/USD) price popped to the highest level since September 7 as demand for the currency jumped. The XLM price is trading at $0.3673, which is about 44% above the lowest level this month. This jump brings its total market capitalization to more than $8.75 billion, making it the 21st biggest cryptocurrency in the world.

Stellar fundamental analysis

Stellar is a blockchain project that is in the cross-border payment industry. The project was developed by a former Ripple Labs co-founder and is currently managed by the Stellar Foundation. 

The Stellar network helps people create digital representations of fiat currencies like the USD and Euro. At the same time, it has a platform that helps developers build their own currencies. 

For example, Circle, a leading blockchain company has used it to build USD Coin, a stablecoin backed by the US dollar. USDC is now valued at more than $32 billion. 

Stellar Foundation has also invested substantial sums of money in some of the leading startups. For example, early this year, it invested $15 million in Airtm, a company that enables people to send and receive money instantly. It also invested $3 million in Tribal Credit and $5 million in Wyre.

The biggest recent news about Stellar came last week. In a statement, MoneyGram said that it had inked a major deal with Stellar that will see customers withdraw USDCs at any of the company’s brands. 

The idea behind this is relatively simple. A customer sends USDC to a person in another country. The person then goes and withdraws these funds at an agent. This is possible because, unlike Bitcoin, USDC is a stablecoin that is backed by the US dollar. 

Before the deal, there was speculation that Stellar Foundation was in talks to acquire MoneyGram in a deal that would have been valued at more than $1 billion.

Stellar price prediction

The daily chart shows that the XLM price jumped to a high of $0.3760 on Wednesday. This was a notable price action since the price managed to move above the key resistance at $0.3690. The price is also along the 61.8% Fibonacci retracement level. It is also being supported by the 25-day and 50-day moving average.

Therefore, at this level, the outlook of the Stellar price is neutral. For one, it seems like it has formed a double-top pattern. As such, there is a likelihood that it could drop. On the other hand, a clear break above today’s high at $0.3760 will mean that there are more buyers in the market.