In just a week, the Stellar (XLM) rate has grown by 150%. This happened against a favorable background and news about a partnership with one of the oldest European banks.
It can be assumed that Stellar (XLM) has more than inspiring prospects, as evidenced by the positive dynamics of its growth in 2021, which may well become the reason for a record high.
What are the prospects for Stellar XLM
Stellar is ranked ninth in the cryptocurrency rating, with a market capitalization of $ 6.4 billion. The coin shows stable dynamics, it has grown by almost 150%.
Stellar is run by the Stellar Foundation, a non-profit organization that began operations in 2015. Since then, more than 450 million transactions have been processed on the Stellar Foundation blockchain.
The fund shows successful cooperation with other players in the financial sector. For example, at the end of 2020, the European bank Bankhaus von der Heydt (BVDH), which is one of the oldest, launched a stablecoin together with Bitbond based on the Stellar blockchain.
According to the CEO of Bitbond, work on the project began in 2019. Then the first tokenized security was launched, which was approved by the German Federal Financial Supervision Authority.
China is already testing its cryptocurrency – the digital yuan; European banks have already begun to consider this issue. And Stellar has every chance of becoming a leader in digital innovation. Ukraine is also going to create a digital version of the hryvnia on the Stellar blockchain
In 2019 and 2020, XLM did not have a very bright technical outlook. The coin remained in a tight range due to sluggish price movements.
XLM hit $ 0.024 on March 13, 2020, but then began to recover. And already in November, there was a growth that did not stop. It should be noted that in order for the coin to rise to a record high, it needs to pass Fibonacci levels, including 0.382, 0.5, 0.618 and 0.786. It has already overcome the first one, then it goes – 0.5, which coincides with the area of horizontal resistance of $ 0.47. And as long as the level is below this figure, one cannot speak of the long-term trend. But confidence is given on the weekly chart by technical indicators, which tend to rise.
Forecast for 2021
By the nature of the March minimum, we can speak of the first wave of growth. And judging by the pullback from $ 0.37 and the potential top in BTC, XLM is confidently heading towards the peak of the first wave. Therefore, further correction and new growth can be expected. This will be followed by the second and third waves, which will allow XLM to rise above $ 0.47, making a claim for the long term.
The third wave area is $ 0.88, which is 2.61 Fibonacci projections in relation to the first wave. Target growth levels: $ 1.20 and $ 1.53. Which is 3.61 and 4.61 Fibonacci projections to the same wave, respectively.
Do not expect the coin cycle to end in 2021, as the first wave lasted seven months. It can be assumed that the third wave may reach its completion in October 2021, the end of the fourth and fifth will be in 2022.
XLM rally started after its lows in March 2020 and can be expected to increase the $ 0.47 resistance area in the second half of 2021. And already in 2022, the coin may reach a new all-time high.