- Stellar coin, also known as Lumens, is the native token of the Stellar Network.
- The network seeks to serve as a bridge for faster, safer, and cheaper transactions across different networks.
What is Stellar coin?
Stellar is a decentralized open network that enables the transfer and storage of digital currency. The Stellar (XLM) coin, often known as lumens, is the network’s native token and is used to transact on the network. The network acts as a bridge that enhances the efficiency of transactions across different platforms. This is intended to put pressure on conventional payment providers, who often demand exorbitant costs for a similar service.
If any of this seems similar, it’s worth mentioning that Stellar’s protocol was based on the Ripple Labs protocol at the time of its creation. A hard fork created the blockchain, and the code was subsequently modified.
At the time of writing, Stellar coin, with a total market value of $9.1 billion, is the 22nd most valuable cryptocurrency by market capitalization and has 50 billion coins in circulation.
Is Stellar coin a good investment?
From Stellar coin’s historical performance, one gets the impression that it has largely underperformed as a cryptocurrency. Specifically, XLM traded within a narrow margin between 2019 and 2020. Nonetheless, since October last year, it has shown strong momentum and proven to be an asset worth investing in.
The token has been around for the last seven years and has a Return on Investment of 12,615%. However, it has largely been unresponsive to crypto market trends, considering that it set its all-time-high almost four years ago.
Nonetheless, XLM price is currently about 30,734% higher than its all-time low, which was recorded about seven years ago. This tells us that the asset has been relatively stable over the long term. XLM has also gained 356% over the past year, and this also makes it a good asset to invest in.
Should I invest in Stellar coin today?
Between January and October 2021, XLM has experienced an average monthly growth rate of 18.65%. At the time of writing, the weekly price chart shows that XLMUSD is marginally down by 1.51%. However, the MACD line has crossed above the signal line, indicating that the bulls could be taking over the market. Therefore, if you buy XLM today, you stand a good chance of profiting in the near future.
Technical analysis for CRYPTO: XLM
Best case scenario
XLM coin price has been on an uptrend since September 30th and its price has mainly remained within a channel as shown on the chart below. The RSI is currently at 57, which tells us that the market momentum is slightly strong. The 20-EMA (green line) is also above the 50-EMA (red line), strengthening the probability of continued bullishness.
With such momentum, we can expect marginal gains. If the bulls sustain the momentum, the price could rise to the first resistance at $0.3946. If it breaches that level, it is likely to encounter the second resistance at $0.4196.
Worst case scenario
The RSI has been dropping over the past week, having declined from 65 to the current 57.This signals that the market momentum could be weakening, setting the stage for bearish control. If the momentum weakens substantially, the XLM price could slip to establish the first support at $0.3685 and the second one at $0.3304. Beyond that point, a loss of momentum could establish the next support at the base of the channel at $0.2543.
Will Stellar coin hit $1 in a year?
As stated above, Stellar coin has been growing at an average of 18.65% per month over the last 10 months. Assuming that it maintains that rate for the next 12 months, the price could grow to $0.46 by October 2022.
What is Stellar coin price prediction for 2025?
Working with the previous growth rate of 18.65% per month for the next four years, XLM price could reach $0.80. However, considering that there is a variation of 59.6% between the current price and the all-time high, XLM could reach a maximum of $1.37 by that time.