The Stellar Lumens price has slowed down recently after a nearly 500% squeeze. On Tuesday, the XLM token traded at $0.5290. This was a few percentage points lower than its year-to date high of $0.6370. The XLM token has risen by 63% from its low point in this year.
What caused Stellar Lumens to price squeeze?
Stellar, Ripple and other crypto companies are often lumped together because they all started out to disrupt the payment industry.
Ripple wanted to convince companies such as banks and money-transfer firms to adopt its RippleNet Technology. These firms will use Ripple’s infrastructure and the XRP to facilitate trading.
Stellar on the other had created a technology which these companies can use to power their own payment networks. The most significant partnership is with Circle. Circle created USD Coin, which is the second largest stablecoin.
MoneyGram is a major player in the payments industry. This partnership allows users to send and receive USDC at thousands of global locations. It is an important partnership which will grow over time as it sits at the crossroads of fiat and blockchain.
Stellar Lumens has seen a price drop due to the increasing amount of cash in the blockchain. The network’s TVL (total value locked) is now at over $60,000,000.
A TVL of $60 million is significantly lower than those found at other, newer chains such as Sui and Base. It is important to note that Stellar launched its layer-1 network, known as Soroban, a few month ago.
Stellar is a network of players that includes LumenSwap and Blend as well as Aquarius Stellar and FxDAO.
Stellar is a well-known name in the Real World Asset tokenization (RWA). The biggest partnership was with Franklin Templeton – a huge asset manager that manages over $1.5 trillion worth of assets.
Franklin uses Stellar’s blockchain for the Franklin OnChain US Government Money Fund, which now has assets of over $400 Million. Assets in the money market fund seem to be increasing despite falling US interest rates.
Stellar Lumens also rose as investors hoped that they would buy the stock soon. Canary, one of the top financial service companies, filed an application for Stellar ETF.
The recent Donald Trump win has also made Stellar, Ripple and other cryptocurrencies more appealing to investors. This is mainly because Ripple had a difficult time with the SEC over the last few years.
XLM Price Forecast
Stellar price chart | source: TradingView
On the weekly chart, you can see that XLM formed a double bottom pattern at $0.0760. The XLM token has already moved past the resistance level of $0.1945. This was its biggest swing since July 2023. This was a significant level because it occurred after Ripple had won a big lawsuit against SEC.
The Stellar Lumens Price has now surged to the pivot point reverse at $0.5860. The price has also risen to the Fibonacci Retracement of 38.2%.
The Stellar Price has also moved over the Exponential Moving average (EMA) of 50 and 100 weeks. The coin also shows signs of developing a pennant-like pattern. The pattern consists of a vertical long line, and triangles.
Stellar’s Relative Strength Index and MACD have both pointed up. There is therefore a high probability that Stellar lumens are going to have a bullish breakout within the next few days. The extreme overshoot will occur at $0.9765. The price of this product is approximately 85% higher than the current market level.
A drop below its key support of $0.4400 (its highest level in November 2021) will indicate further downside.
The post Stellar Lumens Price Prediction: What Next for the XLM Token? This post may change as new information becomes available
