XLM price is in consolidation mode while traders wait for the next catalyst. That Star lumens Coin is trading at $ 0.2660, slightly below this week’s high of $ 0.2853. As a result, the ranking has dropped to 19, which is significantly lower than a few weeks ago.
Is Stellar a Good Investment?
The XLM price was in the spotlight last week when it was revealed that its parent company is partnering with Advent International to buy MoneyGram.
If the deal is confirmed, the company would be worth more than $ 1.2 billion, considering the company has a market value of more than $ 1 billion. It will also be the largest purchase any company made by a crypto firm. It’s also noteworthy that before the new investigation began, MoneyGram had a relationship with Ripple Labs. Hence, the price of the coin is likely to fluctuate as investors wait for the deal to be confirmed. When this happens, XLM will likely benefit from MoneyGram’s strong network.
Meanwhile, the XLM struggles as investors react to the news from Ripple. In a statement on Wednesday, Ripple Labs said it would expand into Japan through a partnership with SBI International. While the Stellar Foundation is not involved, the news is noteworthy as the two companies share the same goal. In fact, the founder of Stellar was a co-founder of Ripple.
Therefore, these events are a sign that the cross-border industry is maturing and gaining more users. In particular, the events come a few weeks after the Stellar Foundation released an encouraging quarterly report.
XLM price forecast
The XLM price was in a tight range as shown on the 4-hour chart. It shows that the coin has formed a bullish flag pattern that is depicted in black. In technical analysis and price action analysis, this pattern usually provides a sign that price is about to have a bullish breakout. The coin also hovers near the 50 and 20 day volume weighted moving averages (VWMA). At the same time, the MACD appears to be forming a bearish divergence pattern.
Hence, the coin is likely to make a big uptrend as investors target the next major resistance at $ 0.35. In the next few months we cannot rule out a situation where it jumps to $ 1. That will be confirmed when it rises above the all-time high of $ 0.80.
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