Stellar (XLM) Is Back – More Reasons To Buy Now?
Is there any reason to look at Stellar (XLM) in the current market setting? Apparently, there is and price movements on the hour indicate there’s optimism creeping into place.
Stellar (XLM) is trading +15% higher today than its previous price against the US dollar. The slight price jump comes amid a general market slump that seems to be heaving with signs of life. It’s expected the short-term uptrend will hold for the next few hours and could go into days if sentiment improves elsewhere.
XLM is currently trading at $0.29 to the USD and could be set to top 30 cents within the hour. The last time Lumens traded above this price was a week ago.
Quite encouragingly for the community though, is the fact that daily trading volumes have gradually increased from lows of $30 million to the current $66 million. Increased activity can only be good for a coin maligned by a lack of volume in the market.
In contrast to today, XLM’s price movements yesterday gave a suggestion that the bears were very much still in place. There was a clear pattern of lower lows, projecting a continuous slide. The coin slid to a low of $ 0.249 before pushing to close at $ 0.282 according to data from CoinMarketCap.
With the bears very much in place, going higher than $0.30 could prove too much for the time being. If selling kicks in, then the coin’s value could be headed for a low of $0.25 as witnessed on May 28, 2018. Yet it may be that the coin gains by a small margin, maintaining an upside move.
The significance of this positive uptrend is that it creates room for any downtrend that may hit if the volatile market suddenly turns. It may be early days, but any upside move in a market that has been headed south for the better part of May is indeed good news.
Can NASDAQ take XLM up?
Other factors could be at play here, seeing that the market is has responded uniformly. However, as much as the daily fluctuations may remain, one bit of news could be the reason XLM is up this much.
Stellar (XLM)is one of three cryptocurrencies to be added to the NASDAQ exchange. The upcoming platform said it chose Lumens for addition to the site due to the growth potential of the Stellar platform.
According to the exchange, Stellar’s partnership with major enterprises like IBM was an indicator of future growth. It appears that the applicability of the crypto’s technology for cross-border money transfer appeals to what NASDAQ sets to achieve.
Whatever the impending listing achieves long-term is a matter of time, but short-term benefits are huge. For one, lumens suffer from a lack of visibility. It thus means that listing on one of New York’s biggest exchange will be vital in injecting capital and liquidity. It will also basically allow more people to invest in the coin, helping in eventual widespread use.
Being listed on the NASDAQ gives investors one more reason to buy XLM. The belief is that some cryptocurrencies will break into the mainstream, becoming integral for everyday use. One of these is likely to be Stellarlumens.
The blockchain is aiming to transform money transfer over international borders. It can be useful in reducing time and costs- two of the challenges facing current traditional systems. Even though it faces stiff competition from 3rd ranked Ripple (XRP), focusing on the unbanked may help it gain an upper hand.
FairX adding up to the excitement
Part of the excitement about XLM at the moment has to do with the launch of FairX. The platform that incorporates a partnership between IBM Blockchain and Stellar is expected to launch its beta soon. It’s important for XLM as offers a platform for its distributed exchange.
Not much has been forthcoming from the FairX team, but in April gave an assurance that everything was on track. This is what they said at the time:
“Sorry for the lack of updates, but just FYI, we’re not just still kicking, we’re full steam ahead. The secrecy is less than ideal, but you’ll understand why it’s important soon enough.”
The growth of lumens in terms of price might not be very rapid, but the gradual movement may lead up to more future gains. With support trickling in, is it one more reason to buy Stellar (XLM) now?