Stellar (XLM), the commonly used phrase to describe this cryptocurrency, is used interchangeably but indicates different aspects of the network. Stellar is the blockchain, with Lumens referring to cryptocurrency, while XLM is the short form for more convenience. The growing gap between fiat and cryptocurrency is the biggest hurdle in the wider acceptance and use of cryptocurrencies, which Stellar intends to bridge. Stellar does this by allowing any Stellar address holder to share their local fiat currency without any gas fees and shortest possible time.
While similar features are now available with most of the fiat currencies in native applications, Stellar combines the power of blockchain to make such transactions more secure. Developing tokenization of fiat currencies has enabled Stellar to dominate the transfer technology, similar to that of stablecoins. Since it allows the tokenization of any digital asset and currency, Stellar can become the baseline application for any transactions or exchange.
Based on its current market capitalization of $2.79 billion, XLM offers decent decentralization with 51% liquidity and ranks 25th on the crypto charts. The potential of this cryptocurrency is limited only by the number of cooperation projects they can work on with a financial bank.
XLM price movement is gradually returning to its pre-2021 movements creating a status quo for its outlook. Just as rapidly the economy recovered from the effect of supply chain issues due to the pandemic, the cryptocurrency market took this recovery as negative news. Capable cryptocurrencies like XLM reaching their support level signifies the lack of ambient opportunities for scaling.
Stellar (XLM) is on a clear decline even in 2022, but short-term price action showcases a consolidation under development in the range of $0.10 to $0.25. Because of this untimely consolidation, the outlook has been inclined towards retesting the support at lower levels. You can check out our XLM prediction if you are interested in investing your money in this token.
The common phase of buying the dip seems to have stopped working for XLM and other cryptocurrency holders, but a retracement can bring back previous buying sprees on XLM. RSI has taken a major hit as it broke down from 64 to 39 in just two weeks, for which the actual price movement was very marginal.
Huge profit booking candles from their weekly high value highlight nothing but the overlooking profit booking sentiment weighing heavier on the XLM buyers. Witnessing huge losses on the portfolio prompts holders to exit and invest in safer cryptocurrencies assets.
The entire gain of September 2022 has been wiped clean by a single weekly candle of October 2022. Such a negative outlook was barely possible in a strong cryptocurrency such as XLM. $0.10 is the immediate and last support level to halt the negative progression of XLM, while the resistance above would be multi-fold at $0.13, $0.15, and $0.24.