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Stellar To Release Protocol 20 Testnet Upgrade, Will XLM Rally?

On September 20, Stellar, a blockchain platform designed to facilitate fast and low-cost cross-border transactions using its native currency, XLM, will release the testnet upgrade of Protocol 20. With this launch, the protocol prepares for the eventual mainnet activation of the Soroban smart contracts platform.

Stellar Prepares For Protocol 20 And Smart Contracts

According to a document on September 18, the testnet upgrade aims to release candidate versions of Stellar Core and Horizon. Stellar is a blockchain network and relies on a network of nodes for transaction validation and to ensure the network is secure. Validators running are kept in sync using the Stellar Core since it acts as the backbone of the entire network, safeguarding the integrity of the blockchain. 

Stellar Horizon is an interface that simplifies interaction between applications and developers with the mainnet through APIs. By eliminating the complexities of interacting with the blockchain, Horizon makes it easier for users to deploy applications. 

Once the stable version is released, Validators will vote on the day when tested upgrades are integrated into the mainnet. The blockchain developer has acknowledged that the Protocol 20 upgrade will bring about new settings, which will require more discussion and adjustments through voting. The Stellar Network will provide a timeline for implementing these changes before rolling them out on the mainnet.

Soroban And The $100 Million Incentive

Stellar describes Soroban as a smart contracts platform designed for “scale and sensibility” and “integrates with and works alongside the existing Stellar blockchain.” The portal is currently being tested in Stellar’s testnet, Futurenet. 

Stellar claims that some of the network’s core features, such as multi-core scaling and an optimized fee model, make their smart contracts superior since all the “pesky serialization loops” have been eliminated. Unlike Ethereum layer-2 platforms like Arbitrum or Polygon, which operate separately, Soroban will fully integrate with Stellar and remain open source. 

The Stellar Development Foundation rolled out a $100 million Adoption Fund to incentivize Soroban adoption. This program, they explained, is an “umbrella for many programs that support all levels of Soroban adoption, some of which have launched and some of which have yet to launch.”

Stellar price on September 19| Source: XLMUSDT on Binance, TradingView

XLM prices are firm and have been one of the top-performing assets in the past three months. To illustrate, the coin surged from $0.08 in June and more than doubled, reaching $0.18 in late July.

However, the coin has since retraced, dumping by around 40%. However, the uptrend remains looking at the candlestick arrangement in the daily chart. Whether this upgrade will support XLM is yet to be determined.

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Stellar (XLM) Soars By 17% In A Single Week – Can Bulls Maintain Push To $1?

As the general crypto market experiences a slight gain in total market cap, Stellar (XLM) stands out with a substantial amount of price increase over the last week. According to data from CoinMarketCap, the XRP competitor is up by 17.61%, outperforming every other top 100 cryptocurrency in the past seven days. 

XLM To Reach $1?

With XLM currently hovering around the $0.13 price zone, there are speculations on the next movement. Interestingly, a crypto analyst with the name EGRAG CRYPTO on X (formerly Twitter) predicts that XLM could rise to $1 if certain conditions are met. 

According to the analyst’s post on September 8, this bullish prediction is formed on a potential crossover between two technical indicators, namely the 200-day Moving  Average (MA)and the 21-day Exponential Moving Average (EMA).

To explain, the MA indicator reflects the average price data over a specific period of time, e.g., 200 days. It is constantly updated and can be used to identify trade areas and recognize market trends.

On the other hand, The EMA performs a similar function but with a focus on more recent price points. Due to its method of calculation, the EMA reacts to price changes faster than the MA. 

Based on EGRAG CRYPTO’s prediction, if there is an upward crossover of the 21 EMA and 200 MA on XLM’s weekly chart, there is a possibility the token could experience a 500% price surge in the coming months, surpassing the dollar mark to trade at $1.10. 

This prediction is mainly based on historical price data, as XLM witnessed a similar massive price gain when this crossover occurred between 2020 and 2021. 

However, it is worth stating that all predictions are speculations without guarantees and should not be relied on as investment advice. 

Another Partnership For Stellar?

In other news, the Stellar community appears to be expecting a massive positive update in the next few days. On September 2, Stellar Development Foundation shared with its crypto community that “Something cool is dropping in 10 days”. 

This announcement was well received, with the XLM token rising by 10% in the next 24 hours. Interestingly, some enthusiasts predict Stellar could announce a new partnership in the coming week.

The blockchain network has already collaborated with companies such as American remittance firm MoneyGram and Circle, the company behind the USDC stablecoin. In fact, Stellar announced a minority investment in MoneyGram earlier in August. 

For now, it remains unknown what this new development could be. However, there is the possibility it could elicit some effect on XLM’s price trajectory.

At the time of writing, XLM is trading at $0.132, having gone up by $0.132 in the last day. In tandem, the token’s daily trading volume has gained by 21.33% and is valued at $119.14 million.

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XLM Surges With 10% Rally – Can The Recovery Hold Its Ground?

Stellar (XLM) has experienced a robust resurgence, bouncing off a crucial support level at $0.11. Chart indicators are pointing towards a promising outlook for bullish investors, marking a significant shift in momentum since mid-August. This second rebound from the same support level underscores the formidable strength exhibited by bulls, hinting at the potential for further gains.

A price analysis notes that the $0.11 support level has emerged as a steadfast defense line for XLM enthusiasts. Recent price action has illustrated that bears would need to work diligently to flip this level in their favor, extending the bearish momentum. 

However, the bulls have displayed unwavering determination, as evidenced by the latest retest of the support on Sept. 4, which triggered a notable price pump.

As of the latest data, XLM is trading at $0.124 according to CoinGecko, reflecting a 2% rally over the past 24 hours and an impressive 10% surge in the last seven days. These gains are indicative of growing optimism among XLM investors.

XLM Chart Indicators Favor Bulls

The on-chain indicators are aligning with the bullish sentiment surrounding XLM. The Relative Strength Index (RSI) hovers around the neutral 50 mark, suggesting a healthy demand for XLM.

Additionally, the Chaikin Money Flow (CMF) stands at +0.10, indicating an influx of capital into XLM. This influx is typically a bullish sign, pointing towards the growing confidence among investors in the cryptocurrency.

Despite the resurging optimism, XLM faces a battleground in the long/short ratio on exchanges. The tight margins indicate that sellers are actively trying to thwart the bullish rally.

While long positions are inching closer to the critical 50% flip point of the long/short ratio, sellers currently maintain the upper hand, exerting pressure on XLM’s upward trajectory.

What Lies Ahead For XLM?

With the $0.11 support level proving to be a formidable stronghold for bulls and chart indicators hinting at further gains, XLM enthusiasts are eyeing a target range of $0.17 to $0.19, aiming to revisit the highs last seen in July.

The crypto market remains dynamic and volatile, so investors should remain vigilant and stay tuned for developments that could impact XLM’s price trajectory.

XLM has staged an impressive rebound, bolstered by strong support and positive chart indicators. While challenges persist in the form of bearish resistance in the long/short ratio, the bullish momentum remains intact, with investors setting their sights on recapturing the July highs. The cryptocurrency market continues to evolve, and XLM’s resurgence is a testament to its resilience in the face of market fluctuations.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Stellar

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Stellar Tough Spot: Will XLM Prices See A Dip Amid Mid-Range Struggles?

Stellar (XLM) investors were in for a surprise over the weekend as the cryptocurrency staged a remarkable comeback, defying the prevailing bearish trend across the crypto market. 

The token’s price surged by 7.3% in the past 24 hours and recorded a 2.3% increase over the past week, now resting at $0.122461 according to CoinGecko.

While cryptocurrency enthusiasts are rejoicing over the impressive price performance, the question that lingers on everyone’s mind is: why did Stellar’s price jump during the weekend? Two plausible explanations have emerged.

XLM Surge Potential Triggers

One likely catalyst for the sudden Stellar surge is the tantalizing tease from its developers regarding an important announcement scheduled for next week. This cryptic hint has stirred anticipation and speculation in the crypto community, with investors eagerly awaiting what could be a game-changing revelation for Stellar.

Another factor that might have contributed to the bullish sentiment around Stellar is the upcoming Meridian event set to be hosted by the blockchain platform later this month in Spain. 

Meridian, known as Stellar’s flagship annual event, is expected to bring together a multitude of influential speakers from the blockchain and cryptocurrency space. Their speeches and insights have the potential to significantly influence market dynamics, possibly explaining the increased demand for XLM.

Technical Analysis Indicates Potential Challenges Ahead

Despite the recent surge, some technical indicators suggest potential challenges for Stellar. XLM has consistently closed daily sessions below the mid-range price of $0.1150, signaling increasing seller leverage. A weekly session closure below this level could confirm the sellers’ advancement, potentially pushing XLM toward the range low of approximately $0.1000.

However, this range low is not without its silver lining. It coincides with a daily bullish Order Book (OB) ranging from $0.0953 to $0.0986, creating a strong support zone for the cryptocurrency. Investors will be closely monitoring whether XLM can maintain its foothold in this zone or if further bearish pressure awaits.

In the past few days, funding rates in the crypto market have been predominantly negative, underscoring the prevailing bearish bias. This bearish sentiment is further supported by the declining Open Interest (OI) rates witnessed in August and early September.

The decrease in OI reflects reduced demand for XLM during this period, suggesting that investors remain cautious in the face of market uncertainties.

As the crypto community eagerly anticipates the forthcoming news from Stellar’s developers and the Meridian event, XLM’s price trajectory remains uncertain.

Traders and investors are advised to exercise caution and closely monitor the evolving market dynamics in the coming days, as these developments could play a pivotal role in determining Stellar’s future price movements.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from MEXC Blog