The price of XLM increased by almost 150% during the week of January 4.
XLM is expected to trade above the 0.47% area during the end of 2021.
The price will likely reach a new all-time high in 2022.
Stellar’s (XLM) price rose almost 150% throughout the week. This is a massive upward move that may have been fueled by the positive news of a new partnership with one of Europe’s oldest banks.
It looks like Ethereum Code has started a new long-term rise that will continue through 2021, and ultimately lead to a new all-time high.
What is happening with the XLM?
In terms of market capitalization, Stellar is currently the ninth highest ranked crypto currency. Its total market capitalization is approximately $ 6.6 billion. XLM was one of the biggest winners of the week, rising almost 150%. If this rally were to continue, the XLM could continue to climb through the ranks.
Stellar is managed by a non-profit board of directors called the “Stellar Foundation”. The project aims to be an intermediary between fiat currencies and cryptocurrencies for both large and small transactions. Since its inception in 2015, Stellar has processed more than 450 million transactions.
Stellar has also made progress in the area of real-world use cases. In December 2020, Bankhaus von der Heydt (BVDH), one of the oldest European banks, together with Bitbond created a stablecoin backed by the euro. The latter will operate on the Stellar network.
The CEO of Bitbond said:
Bitbond has worked with Stellar since 2019, when we issued the very first token security recognized by the Federal Financial Supervisory Authority (BaFin), the financial regulator for Germany.
Knowing that China has already tested its digital yuan , European banks could end up following suit. If so, Stellar could be at the forefront of this revolutionary development.
Long-term levels of XLM
During most of 2019 and 2020, the technical outlook for XLM looked bleak. The price had accumulated below the $ 0.20 zone after initially falling below this level in October 2018. Consolidation was gradual, with no significant volatility.
On March 13, 2020, the XLM hit a low of $ 0.024. Since then, however, the price has risen. The pace of the rise accelerated sharply in November, and XLM climbed at an even faster pace during the week of January 4, 2021.
As of this writing, the XLM was down after hitting the 0.382 fibonacci retracement level, at $ 0.36. This level is obtained from its record price to date, namely $ 0.91.
This is a huge resistance. This is because if XLM is determined to head to a new high, it needs to break through significant fibonacci retracement levels, namely 0.382, 0.5, 0.618, and 0.786.
Especially important is the 0.5 Fib fibonacci retracement level, since it also coincides with the horizontal resistance zone of $ 0.47. So, until the XLM recovers this level, we cannot consider the trend to be upward.
That said, the weekly technical indicators are bullish despite a rally that is too prolonged. A bullish cross of the Stochastic Oscillator (underlined in green) would confirm that a long term uptrend has started.