Stellar Lumens (XLM/USD) – Forecast Summary
|XLM/USD Forecast: H1 2021
Price: $0.6065 – $0.8105
Price drivers: Weaker dollar, Symmetrical triangle breakout, Bullish engulfing
|XLM/USD Forecast: 1 Year
Price: $0.8105 – $1.2609
Price drivers: MACD & EMA Support, 161.8% and 227.20% Fibonacci extension
|XLM/USD Forecast: 3 Years
Price: $1.2900 – $0.8105
Price drivers: Overbought indication, Bearish correction
The Stellar Lumens XLM/USD crypto pair has recently exhibited a strong bullish trend, following in the footsteps of its peers. Currently, the XLM/USD pair is trading at the $ 0.4066 level, having gained 32.55% during the past month. Considering the performance of the past six months, the XLM/USD pair has gained +$ 0.3098, soaring massively by 320.21%. Simultaneously, the Stellar Lumens has gained +$ 0.3460, surging by 571.22% over the period of one year.
Currently, the XLM/USD Live Price chart suggests that Stellar Lumens (XLM) is trading at $ 0.4066. The market cap of Stellar Lumens is USD 11.21B.
Recent Changes in the Stellar Lumens Price
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The cryptocurrency, Stellar Lumens, was created to provide users with the feature of breaking the inherent boundaries when making international transactions. Specifically, the boundaries could be defined as the lengthy transaction time and the high fees associated with it. The Stellar developers created a currency to solve the above-mentioned obstacles, by providing a cheap and quick way to send and receive money across the whole world. However, the Stellar network created the cryptocurrency to operate within the system. The developers of the Lumen currency understood that people in many areas of the world do not have convenient access to financial services, and where such services are available, they are very costly.
With this vision in mind, the developers of XLM made their financial services accessible with just two simple internet access and hardware requirements. Lumen was designed to bridge the gaps between the different financial institutes and to support the existing financial system, rather than challenging them. XLM has a unique feature that enables it to create a synchronized environment for all kinds of financial networks.
Stellar is a peer-to-peer decentralized exchange area, which uses Lumen as a coin on the platform. Since its launch on the Stellar Platform in 2014, the Lumen (XLM) has developed into the top 20 most popular cryptocurrencies. Stellar, which was launched by Ripple co-founder Jed McCaleb, was initially known as “the Secret Bitcoin Project”. The current market capitalization is $ 11.21B. Over the past six years, the Stellar network has been able to gain the attention of various high-profile enterprises. Stellar is powering apps and payment systems for some of the world’s biggest businesses, like IBM and Deloitte.
Stellar never really achieved any significant growth for years after its launch. However, it started to pick up pace in Dec. 2017, surpassing the $ 0.10 price. In January 2018, the XLM crossed $ 0.50, and in mid-2018, the prices of XLM reached an all-time high at $ 0.8755. Nevertheless, the spike was short and prices soon returned to their standard and were relatively stable throughout 2020. The value of XLM today can by no means be compared to what it was worth in 2018. It has increased significantly compared to the first couple of years of its existence. Recently, Stellar has become the 9th-largest cryptocurrency, and one of the best-performing coins among its peers. It grew by more than 160% last week.
XLM/USD Price Prediction for the Next 5 Years
The year 2020 was a unique year for Stellar, due to the coronavirus pandemic and the economic crisis. Both global and internal factors kept driving the value of XLM in 2020. In April 2020, the Stellar Lumens Foundation released its report for the first quarter of 2020, showing remarkable ecosystem growth. The report suggested that the total usage of Stellar Lumens and the transaction volumes had increased in Q1 of 2020 compared to Q4 of 2019. However, the total number of registered Stellar accounts decreased by about 1.79% between Q4 2019 and Q1 2020. This means that the increased activity in the transaction volume was due to the existing users.
Throughout the first quarter of 2020, an increase of 113% in Stellar’s daily operations was reported. Another event that supported the Stellar Lumens was the use of the company’s network by CoinQvest for the processing of international payments. This enabled a faster and cheaper transaction process, as Stellar was able to move millions of dollars in just a couple of seconds, and at the price of just a few pennies. This made Stellar very cost-effective for both the sender and the recipient, despite them being separated by thousands of miles.
In July, the company announced cooperation with Samsung, that enabled Stellar blockchain access on Samsung Galaxy smartphones. The owner and creator of Stellar, Jed McCaleb, reported that they had a partnership with 30 banks and ventures, and this also contributed to the strength of Stellar Lumens. XLM was trading within the $ 0.08 – $ 0.10 range until mid-November. However, the prices moved both up and down at the end of the year but closed the year on $ 0.12.
During the early weeks of 2021, the Stellar Lumens saw a surge in its demand as traders started moving from Ripple (XRP) to Lumens (XLM). The Ripple was going through difficult times due to SEC lawsuits, which forced the traders to move to the Stellar blockchain payment network. Furthermore, Stellar started cooperating with the Ukrainian government to digitize their national fiat currency, which boosted the strength of Stellar Lumens. January 2021 was an excellent month for Stellar as, during this month, the value of XLM increased by roughly 60% in the last few days of the month. Recently, Stellar hit its highest level in two years, at $ 0.40, and this hike in the Stellar prices placed it on the Top 10 list of the world’s biggest cryptocurrencies. The outlook for Stellar throughout 2021 and upcoming years appears to be bullish and may lead its prices towards $1.290. However, the following factors might play an essential role in deciding the movement of XLM/USD in 2021.
Factors Affecting the Stellar Lumens:
Social Impact – Being a non-profit organization, it is a bit unusual that Stellar is in the crypto market. The Stellar organization has no plans to operate its functions for monetary reward, but the goals of the organization include eliminating poverty and financial inclusion of bankless individuals. As a result, social impact plays a vital role in the value of the XLM. Because the Stellar Organization has had little impact so far, and because of their social mission, most people ignore investing in Stellar Lumens. Along with IBM, Stellar has taken up a South Pacific project to provide financial services, especially on remote islands. Stellar has been actively taking part in such projects, and has come into the spotlight, which means that, in future, good things can be expected from the Stellar prices.
Competing Coins – Bitcoin is one of the kings of cryptocurrencies, and also a market leader. Many altcoins have tried to dethrone it, but they have failed every time, as Bitcoin has a huge market impact. Most of the cryptocurrencies correlate positively with Bitcoin, including Stellar, which means that any changes in Bitcoin will affect the market and the Stellar prices. Furthermore, the Stellar is also known as a hard fork of Ripple (XRP), due to the similarity between the two coins. Altcoins are perceived to be strong competitors, which means changes in Ripple can easily alter the prices of XLM. This implies that the prices of both Bitcoin and Ripple should also be considered when projecting the Stellar Lumens price.
Adoption – Stellar has a very similar platform to PayPal, and this feature of Stellar makes it ideal for micropayments, overseas transactions and currency exchanges. The Stellar organization aims to become the mainstream platform for digital payments and currency exchanges. Recently, Samsung has formed a partnership with Stellar, and with the increased adoption of high-profile businesses, the value of the altcoin is expected to go up soon, as adoption will increase the demand for Stellar, which will ultimately raise its prices. Stellar’s current outlook suggests that Stellar is paving the way to becoming the go-to platform for digital payments, and its adoption is likely to increase, raising the prices of XLM soon.
Technical Analysis – Brace for a Bearish Correction in XLM/USD?
The technical side of XLM/USD is exhibiting a strong bullish bias on the monthly chart. Stellar formed a symmetrical triangle pattern that was extending resistance in the area around $ 0.2397. In Jan. 2021, the XLM/USD pair soared dramatically, violating the triangle pattern with a bullish engulfing candle. A bullish breakout of the XLM/USD pair has triggered dramatic buying in the XLM/USD pair, leading it towards a high at $ 0.6072. Although the pair shows a bearish correction right now, the odds of continuation of the bullish trend remain pretty solid.
On the higher side, the XLM/USD pair may face immediate resistance at $ 0.4391, which is extended by a double top level. A bullish breakout at the 0.4391 level could drive further buying in the XLM/USD pair, until the next resistance levels of 0.5421 and 0.6434. The 20 periods exponential moving average is supporting an upward trend in Stellar. The monthly MACD and RSI suggest a strong bullish bias in Stellar; therefore, a bullish breakout at 0.6434 could lead the XLM/USD pair towards the 0.8075 level, extended by a 161.80% Fibonacci extension level. On the monthly time-frame, the XLM/USD pair is likely to find support at 0.3410 and 0.2397, extended by a previously violated trendline resistance level.
Taking a look at the weekly timeframe, the XLM/USD pair has entered the overbought zone, and it is now heading amid profit taking by investors. On the lower side, the Stellar is pretty likely to go after 0.4056, which marks a 38.2% Fibonacci level, whereas a bearish breakout at 0.4056 could drive more selling until the 0.3433 and 0.2811 levels, which are extended by 50% and 61.8% Fibonacci retracement levels respectively. Despite this, the XLM/USD pair is likely to continue trading bullishly, as the leading and lagging indicators support a buying trend. A series of exponential moving averages, such as the 20, 50 and 100 periods EMA, support the pair at around 0.1350, 0.1760 and 0.2823 respectively. Let’s consider staying bullish above the 0.2758 area, to hit long-term target levels of 0.6084 and 0.7580. Good luck.