- Stellar announced that two community projects would be receiving XLM-based grants.
- XLM price eyes a 20% upswing, but its ascent is sprinkled with stiff resistance levels.
- A decisive close above $0.50 is vital in achieving $0.58.
Stellar network effects could significantly increase as two projects built on the XLM blockchain will receive funds via the seed fund. XLM price shows its upside move is riddled with hurdles.
Coinqvest and Anclap to increase Stellar network effects
These projects, built around the Stellar blockchain, offer inflation-free payment processing to merchants and enterprises in Argentina.
While Conqvest’s advanced blockchain payment solutions strive to comply with regulations, Anclap’s ARS token, issued on the Stellar blockchain, can be used to pay anything.
Since these projects interact with the XLM blockchain and its constituents in one way or another, it could significantly increase the network effects and strengthen the remittance token’s fundamentals.
XLM price vies to move higher
XLM price, like many other altcoins, is range-bound due to the indecisiveness of the cryptocurrency market. The upper range at $0.60 was breached in mid-April but failed to sustain.
As a result, Stellar’s market value dropped nearly 48% and is currently trading above the lower bounds at $0.40. While an upside move seems likely considering the lack of a clear trend, it will face solid resistance levels.
A breach of the immediate supply zone that extends from $0.47 to $0.50 will be critical in determining the upswing. If successful, the buyers might push XLM price to the next area of interest that expands from $0.58 to $0.61, representing a rough 20% climb.
XLM/USDT 6-hour chart
On the flip side, a failure to breach the supply zone or a rejection at the 50% Fibonacci extension at $0.50 could trigger a downside move.
If this bearish trajectory moves beyond $0.38, it will invalidate the bullish structure and kick-start a downward move to $0.36.