There is still a certain degree of uncertainty regarding the Stellar Project
Stellar has many advantages over Bitcoin, but there are some obvious risks when it comes to investing in XLM
If the price jumps above $0.090, the next target could be $0.100 or even $0.110.
The price of Stellar (XLM) has dropped from $0.119 below $0.070 in less than three months, and the current price is around $0.083. The main reason for this is a low transaction volume and the fact that the project is still subject to some degree of uncertainty.
Fundamental analysis: There is still a certain degree of uncertainty
Stellar (XLM) has been on a downward trend in recent weeks, and so far there is no signal for a trend reversal. Stellar is a platform with the mission to connect payment systems, people and banks almost for free.
Stellar has its own crypto-currency known as Lumen (XLM), and it is important to say that this platform can be the future of banking as it strives to provide a practical solution to important global problems. Stellar has many advantages over Bitcoin, some of which are capacity, transaction speed and lower fees.
Transactions on this network are completed in as little as 2-5 seconds and are free. Bitcoin is slow and expensive because of the degradation process, while Stellar avoids the costly degradation process.
Another advantage is that the Stellar platform allows fast and easy transfer between different types of currencies, such as from Fiat dollars to crypto coins. Stellar supports Initial Coin Offerings (ICOs) with great confidence. Users can create individual ICOs by offering basic abstractions such as payments, tokens and accounts.
Stellar is increasingly being adopted by banks and payment networks, some major names are IBM, KlickEx, Stripe, NEC Payments, Gramio Technologies, Distributed Lab and others. The partnership with IBM is a vote of confidence in the team behind Stellar, which is very important for this crypto currency.
A very good team is behind this project, the basics of this crypto currency are constantly improving, but there is still a certain amount of uncertainty regarding the project. We must also not forget that regulations in the crypto-currency market can actually pose a threat to this crypto-currency.
Investors in Stellar should consider that it concerns a still very risky crypto currency, but now could be a good time to act Stellar (XLM).
Technical Analysis: Bears focus on breaking the support level at $0.080
Data source: tradingview.com
On this diagram I have marked important resistance and support levels. The important support levels are $0.080 and $0.070, $0.090 and $0.100 represent the resistance levels. If the price jumps above $0.090 it would be a signal to buy Stellar (XLM) and we have the open path to $0.100.
A rise above $0.100 supports the continuation of the bullish trend and the next price target could be $0.110. If the price falls below $0.080 on the other side, it would be a “sell” signal and we have the open path to $0.070.
Summary
The Stellar price extended its correction from the recent highs above $0.119 recorded in the third week of August. There are some obvious risks to investing in Stellar at this time, but if the price jumps above $0.090, it would be a signal to buy this crypto currency and we have the open path to $0.100.
Read More: The Stellar (XLM) price has fallen 30% since August. Should I invest?.