XLM: Is It Possible to Cross the $1 Psychological Barrier?
XLM, Stellar Lumens, is one of the oldest cryptocurrencies in the market. It was founded even before Ethreum (ETH). Stellar is an open-source network meant to facilitate the transaction between different currencies and payment methods. Stellar XLM was co-founded in 2014, by Jed McCaleb and Joyce Kim, which they launched in 2015. Jed McCaleb was previously the co-founder and CTO of Ripple also known as XRP.
The goal of this cryptocurrency is to bridge the widening gap between cryptocurrencies and fiat currencies. Combining the widely used and recognized fiat currencies over the decentralized network offered by blockchain allows Stellar to do wonders.
XLM price has been moving up and down just as the broader crypto market but the basic value of this currency has withheld some of the technical indicators showing strength in their value. XLM price prediction is one of the most searched topics on the market as people believe this currency can revolutionize our convenience with fiat currency with blockchain’s capabilities.
How does XLM bring fiat currencies to the blockchain?
They provide a unique service using tokenization. Any stellar user intends to send dollars to someone with a stellar address, it is done using dollar tokens. These dollar tokens and others like it are available on the Stellar blockchain, and carry the same price as their currency counterparts. This is deemed possible by backing each token by actual currencies in bank accounts dedicated for transfer purposes.
Hence, whenever a user intends to convert their tokens, they can be transferred to actual fiat currencies. Since this platform was developed with the exact purpose of aiding currency transactions, XLM takes the entire concept to a different level. The best aspect of XLM is their no privilege treatment to any currency. In fact, XLM works with all the currencies in the world that are backed by local anchors.
You can get dollar tokens, euro tokens, and all the fiat currencies present in the market. All the tokenization work is integrated right into the network with proper documentation making it easier for fintech companies to back currency tokens. Their flagship tokenization process paves way for the transfer of even commodities and precious elements, such as gold, silver, or even work payments based on hours and minutes.
Such a process is possible all because of Stellar’s third-party companies which are popularly known as anchors. These anchors help bridge the gap between Stellar, blockchain, and traditional financial systems. The Stellar Development Foundation, a not for profit organization founded by Jed McCaleb in 2014 oversees a set of rules to become anchor partners. The rules prompt the anchor partners to maintain actual reserves for each issued token in a dedicated and audited bank account.
XLM Technical Analysis
Currently, the price is closer to the immediate resistance of 100 DMA and there can be some consideration before a strong up move. The level of $0.48 will be something to consider before making a fresh entry for a bull run. Heiken Ashi also shows XLM is taking support from the $0.41 levels since rising on the 24th of May. In the short term, this cryptocurrency can again provide an entry around the immediate support levels.
The value of this cryptocurrency is hovering around $0.50 which is almost a 40% fall from the recent highs of $0.80. But the bigger question is something else, can this coin outlast other cryptocurrencies or will it meet the same feat? We will try to derive some important information from its charts and price momentums. Even despite the fall in value XLM has taken support from its 200 Day Moving Average, which is currently at $0.35. As it tries to move up again it will be facing stiff resistance at the 100 Day Moving Average of $0.48.
Given the strong fundamentals and its capability to facilitate faster transactions and conversions, this coin shows a lot of potential in the real world. Considering the cash pockets of all major investors, this crypto shows promising signs of crossing the $1 value.