Stellar is a platform that offers financial services to both companies and individual users. It aims to provide lower transaction rates with faster speed. It was created by Jed McCaleb and Joyce Kim back in 2014. XLM is the native coin on this platform. It allows the user to share financial information in a faster and easier way that helps companies to improve their services. It can handle thousands of transactions per second faster than top cryptocurrencies such as Bitcoin and Ethereum.
Stellar works in a very simple way; a user can connect with another user on this network to send money or use a bank that helps the user transfer money using cryptocurrencies and blockchain technology. It is a decentralized technology that provides customers with better services.
XLM was launched in 2014, and it powers the Stellar network for these services. At that time, it was known as Stellar, but later it changed its name in 2015. It has two different purposes:-
- It provides security in the system because XLM is used for transaction fees or holding balances on the Stellar wallet.
- It also offers multi-currency transactions that help to trade between two different currencies.
The best part is it has a market cap of $2,825,520,118 with a 1% annual inflation rate. No one can generate new Stellar arbitrarily, and this feature makes XLM one of the popular cryptocurrencies based on its future growth potential. Check out our XLM price prediction to know the detailed future projections.
When writing this analysis, XLM was trading at $0.112, but it has been consolidating between a range of $0.09 and $0.12. We can consider these levels as a strong resistance and support, and Stellar may not cross these levels any time soon.
However, most technical indicators are bullish on the short-term chart. MACD has been forming green histograms, and RSI is at 50, indicating positive momentum for the short term. In the last 24 hours, XLM has formed a red candle, but it is tough to predict whether it will hit the support or resistance.
On the weekly chart, Stellar has been in a downtrend. The token may continue to downtrend for some time because most technical indicators are bearish and do not suggest buying opportunities. We think you should wait for the right opportunity, but you can accumulate some coins, and if it falls further, you can accumulate more coins to average the price.