XLM struggles to clear key hurdle

The Stellar (XLM/USD) price popped to the highest level since September 7 as demand for the currency jumped. The XLM price is trading at $0.3673, which is about 44% above the lowest level this month. This jump brings its total market capitalization to more than $8.75 billion, making it the 21st biggest cryptocurrency in the world.

Stellar fundamental analysis

Stellar is a blockchain project that is in the cross-border payment industry. The project was developed by a former Ripple Labs co-founder and is currently managed by the Stellar Foundation. 

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The Stellar network helps people create digital representations of fiat currencies like the USD and Euro. At the same time, it has a platform that helps developers build their own currencies. 

For example, Circle, a leading blockchain company has used it to build USD Coin, a stablecoin backed by the US dollar. USDC is now valued at more than $32 billion. 

Stellar Foundation has also invested substantial sums of money in some of the leading startups. For example, early this year, it invested $15 million in Airtm, a company that enables people to send and receive money instantly. It also invested $3 million in Tribal Credit and $5 million in Wyre.

The biggest recent news about Stellar came last week. In a statement, MoneyGram said that it had inked a major deal with Stellar that will see customers withdraw USDCs at any of the company’s brands. 

The idea behind this is relatively simple. A customer sends USDC to a person in another country. The person then goes and withdraws these funds at an agent. This is possible because, unlike Bitcoin, USDC is a stablecoin that is backed by the US dollar. 

Before the deal, there was speculation that Stellar Foundation was in talks to acquire MoneyGram in a deal that would have been valued at more than $1 billion.

Stellar price prediction

The daily chart shows that the XLM price jumped to a high of $0.3760 on Wednesday. This was a notable price action since the price managed to move above the key resistance at $0.3690. The price is also along the 61.8% Fibonacci retracement level. It is also being supported by the 25-day and 50-day moving average.

Therefore, at this level, the outlook of the Stellar price is neutral. For one, it seems like it has formed a double-top pattern. As such, there is a likelihood that it could drop. On the other hand, a clear break above today’s high at $0.3760 will mean that there are more buyers in the market.

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