Stellar (XLM) is currently trading at around $0.11 following some consolidation over the last couple of days and a recent drop of 4% in price. This follows a price increase of almost 10% against the dollar since early April 2019.
Although sellers have been in control for the last few days, price hasn’t dropped substantially. On the contrary, price has in fact been consolidating nicely, much like most other cryptocurrencies. I therefore expect buyers to regain control soon and push XLM upwards.
Looking at the chart, if XLM is able to find new support around $0.11, we could soon see a run towards the 200-day EMA. However, a further drop could also happen due to the thinner volumes we’re currently experiencing.
Stellar’s current support can be found close to the 20-day EMA, around $0.11, as buyers are clearly supporting that price level.
The short-term trend seems to be one of consolidation, although the long-term one seems quite bullish. Any push forward could see price touching $0.145.
Last month, global technology giant IBM announced the launch of its new payments network. The service is blockchain-based and powered by the Stellar protocol, and will be known as IBM Blockchain World Wire. IBM’s solution is a real-time global payments network, supporting cross-border transactions and foreign exchange in over 50 countries using digital assets via the use of stablecoins.
As part of this exciting news from the organisation, IBM has already signed six international banks to launch their own stablecoins on the network. Three of the banks have officially been identified: Philippines-based RCBC, Brazil’s Banco Bradesco, and Bank Busan of South Korea. The others are still yet to be named.
IBM’s head of blockchain for financial services, Jesse Lund, said on the announcement:
“Aside from issuing their (banks) own tokens, the arrangement opens up the possibility of banks using Lumens, the native token of the Stellar blockchain, which can be used as a bridge currency when it is hard to trade one type of fiat for another. Also, World Wire could support other cryptos but is only supporting Lumens for the moment because financial institutions are put off by the volatility of cryptocurrencies.”
About Stellar Lumens
Stellar was founded in 2014 by Jed McCaleb and Joyce Kim. At launch, it was based on the Ripple protocol, but the network eventually forked. Stellar is an open source protocol for exchanging money where servers use the internet to connect to and communicate with other Stellar servers, forming a global value exchange network.
Stellar Lumens is one of the largest cryptocurrencies and is one of the Top 10 Cryptocurrencies by market capitalisation.
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