Introduction
Stellar (XLM) is a decentralized payment network designed to facilitate quick and reliable cross-border transfers at minimal cost. While recent activities may not appear promising, the network boasts a robust infrastructure and a long-standing position within the top 50 cryptocurrencies.
Long-term Analysis
From a long-term perspective, certain bearish indicators are present. The coin's peak during the first bull cycle was at 0.93 USD, while the second bull cycle saw a lower peak of 0.78 USD. This trend does not bode well for the future.
However, the rising hype surrounding Central Bank Digital Currencies (CBDCs) presents an opportunity. Governments worldwide are actively discussing CBDCs, and both XRP and XLM are potential candidates for integration. If such news materializes, XLM could potentially breach the 1 USD mark.
Weekly timeframe: XLM shows bullish signs, currently exhibiting a ranging movement within an accumulation zone. A retracement to 0.10 USD is possible, followed by a potential upward surge.
Short-term Analysis
- Daily timeframe: Waiting for one more candle is recommended. If the next candle is green, a significant return can be expected, with XLM crossing the 0.14 USD mark.
- 4-hour timeframe: Suitable for scalping. Enter the trade if the green candle crosses 0.1291 USD. Set profit at 0.1341 USD and stop-loss at 0.1247 USD.
Disclaimer
The information provided in this analysis is solely for educational purposes and does not constitute financial advice. Any investment decisions made based on this analysis are at your own risk.