XLM Price Drops 7.5% After Stellar’s Big Announcement Turns Out to Be a Rebrand

Key takeaways

• Stellar (XLM) announced today that the project will adopt a new-look brand identity as it aims to connect blockchain to the real world in a more equitable way
• Traders may have been disappointed by the recent announcement as XLM price fell 7.5% today
• Algorithm predicts a resurgence for XLM over the coming 6 months, targets key resistance levels back towards ATH over next year

XLM rebrand falls flat, price drops 7.5%

Stellar (XLM) announced today that the project has adopted a new modern look during an official rebrand. In an official release from the Stellar Development Foundation (SDF), it was stated that the work to rebrand the project had involved a “herculean effort” and that the project’s ethos is perfectly aligned with actor Idris Elba, who will become a new ambassador for the blockchain.

The wait is over. Introducing the new #Stellar ✨https://t.co/qfEdkz5F1R pic.twitter.com/vLj2BFE090

— Stellar (@StellarOrg) September 12, 2023

The XLM price dropped 7.5% after the announcement was made, indicating that investors may have been disappointed with the new branding. Stellar stated that its trademark concept, “Where blockchain meets the real world,” will be made more of a reality by the shift to a new identity.

Previously, Stellar had featured dark colors and a technical tone of voice. The new move features bright colors and a more personable tone that has commonly been found in modern user-facing services. The project’s collaboration with Idris Elba is intended to “amplify the brand and product story,” while the updated tone and color palette is designed to seem more helpful.

Algorithm predicts further downside over next 5 days

The Stellar price prediction algorithm forecasts a continued slide for XLM. After falling 7.5% today, XLM is expected to fall a further 2.99% by 17th September. This would take the token to the $0.1184 price level in the next 5 days.

In the mid-term, however, XLM’s prospects remain positive. According to the algorithm’s 6-month price prediction, XLM is expected to see a major price increase that takes it above resistance at the $0.17 price level. In total, XLM is expected to climb 76.16% by March 2024 — hitting the $0.19 level in the process.

6-Month XLM price prediction.

A March resurgence for XLM would be confluent with the Bitcoin (BTC) halving event that is set to take place in the same month. Interestingly, the CoinCodex algorithm predicts that XLM could break through resistance at the $0.20 price level during this time before targeting higher prices in the subsequent months.

Bottom line: Stellar’s rebrand unlikely to impact XLM’s long-term prospects

Stellar has become the number one blockchain for cash-to-crypto stations, enabling people all over the world to use its highly accessible on-ramp infrastructure. The blockchain continues to push the global adoption effort for distributed ledger technology, and the price of XLM is expected to rise regardless of the project’s brand identity.

Today’s price action may indicate that investors preferred the old look, but Stellar remains above the key support level of $0.105 nonetheless. The algorithm has predicted that an XLM resurgence could coincide with the upcoming BTC halving, which may indicate more bullish price action on the horizon for large-cap cryptocurrencies.

You can learn more about Stellar (XLM) by reading our article, What is Stellar?