This article will analyze Stellar’s dynamics through current developments of the network, and performing an analysis to determine whether it is a good time to invest in the crypto asset.
Stellar (XLM) is a decentralized payment network and cryptocurrency that was created in 2014 by Jed McCaleb, who is also a co-founder of Ripple. The goal of Stellar is to provide a fast and cost-effective way to move money across borders, particularly in developing countries where traditional financial systems may not be accessible.
Like other cryptocurrencies, Stellar is built on a decentralized blockchain network wherein transactions are processed and verified by a network of computers rather than a central authority like a bank. This makes it more resistant to censorship and fraud, and allows for faster and cheaper transactions.
ISO 20022
ISO 20022 is a global standard for financial messaging that provides a common language for financial institutions to communicate with each other. The standard covers a wide range of financial transactions, including payments, securities, trade finance, and foreign exchange.
Stellar is adopting the ISO 20022 standard for its payment network. This means that Stellar will be able to communicate with other financial institutions and networks that also use the ISO 20022 standard, which will make it easier for these institutions to integrate with Stellar and for Stellar users to transfer money to and from these institutions.
The adoption of the ISO 20022 standard is a positive step towards making cross-border payments more seamless and efficient. By aligning with a global standard, Stellar is helping to reduce fragmentation in the payments industry and increase interoperability between different networks and institutions.
Humanitarian aspect
Stellar has a strong humanitarian aspect to its mission. One of the key goals of the Stellar Development Foundation, which oversees the development of the Stellar network, is to promote financial inclusion and empower people in underserved communities around the world.
Stellar’s payment network is designed to make it easier and more affordable to send money across borders, particularly in developing countries where traditional financial systems may not be accessible. This can have a significant impact on people’s lives, as it enables them to receive payments from family members working abroad, access credit and other financial services, and participate in the global economy.
XLM technical outlook
The possibility of a trend reversal being signaled by a breakout is ideally above $0.10. XLM almost accomplished this goal, however, there was resistance at $0.097, and its current price levels can be found ranging at $0.085 – $ 0.087. The native token has also yet to break the 200-day moving average.
In a bear market, it is important to keep an eye out for falling wedges on the weekly chart. As per the last cycle in 2015, XLM did a 516x in just 2 years after breaking out from the falling wedge.
Falling wedges are considered bullish because they often indicate a potential trend reversal to the upside.
In the meantime, we can expect XLM to hit $0.31 – $0.38 when the breakout of the falling wedge happens.
Final Thoughts
Stellar and its native token, XLM, have the potential to be valuable tools for promoting financial inclusion and creating a more equitable and sustainable world. The foundation’s initiatives in this area demonstrate a commitment to creating a more equitable and sustainable world.
That being said, if you are considering investing in XLM, it is important to further your research and carefully consider your investment goals and risk tolerance. Investing in cryptocurrencies is not a guaranteed path to profits, and you should never invest more than you can afford to lose.
Rickie Sanchez is an article writer specializing in cryptocurrency news. Since late 2017, he has been actively investing in cryptocurrencies. He is enthusiastic about everything that has to do with crypto and he hopes that the readers of his articles in the years to come will gain a massive understanding of blockchain technology.
