The cryptocurrency market is still reeling from its latest bloodbath episode, with altcoins meekly crashing alongside Bitcoin. Coins continue to struggle with selling pressure as investors await an unlikely recovery. One of the altcoins to grapple with the pressure is Stellar (XLM).
On the strength of having a fully working product and valued at an exciting low price, Stellar should be one of the top alternatives for any would-be investor. It isn’t the case though, with the coin remaining in the shadow of coins like Ripple, TRON, and lately the troubled EOS.
Stellar (XLM) in the market
XLM’s circulating supply is 18,604,528,460 coins against a total supply of 104,025,824,192 coins. At the moment, its market cap is $4.2 billion and has seen a total of over $50 million worth of its coins traded in the last 24 hours.
Lumens are trading at $0.221 against the US dollar. It’s down by 3.36% and 24% over 24h and 7day periods respectively. Over 30 days, the coin has lost about 36% of its value, which comes down to just under 2% over 90 days. But when compared to its all-time high price, the coin has lost nearly 75%. Its ATH remains $0.9381. If it does go below 20 cents, it would be headed into no man’s land really. And that’s what calls for some sort of uplifting news that can help propel sentiment should Bitcoin hold its own fort and avoid total disaster.
StellarLumens prices have been trading in a range, with $0.50 providing the major resistance area while $0.20 acts as the key support line. In the recent price crash, XLM faced a lot of selling pressure that threatened to see it fall to the April low prices of around $0.20. It completely eliminated the bullish prediction that preceded the weekend.
Now that the market feels the heat of the crash, XLM prices are firmly back into the bearish hold. Any potential short-term moves in either direction could be pivotal. Any moves below the immediate support line at $0.20 triggers further declines to bring in the $0.16 support area. On the brighter side, any moves on the upside of $0.22 could prove instrumental in curtailing decline and consolidating support and look rallying back to $0.24.
Demand for XLM
Apart from the recent price tank that has threatened to erode any hope of getting near its all-time high, Stellar does also suffer from another problem: accessibility and liquidity in the market. At the moment, it has the lowest daily trading volume among the top 10 coins. And this is despite having the fourth largest circulating supply.
Demand for XLM is sure going to explode in the near future as more projects launch on its platform. However, till adoption takes root, it will continue to suffer from low volumes a reflection of what’s missing.
The seemingly stagnant price patterns and lowly trading volumes could be a factor as to why Stellar continues to be so undervalued. It’s likely to change in coming days, but as for now, it needs fixing by adopting a robust marketing strategy and the community rallying behind the coin.
Stellar has been in the market for about 46 months now and it has one of the top partners in IBM. Many other exciting events like the previous six build challenges, projects like Stronghold, and crypto listings have all failed to catapult the coin into the limelight. It means the coin doesn’t gain much in the aftermath of these events.
Will Stellar capitalize?
While the market drained as prices crashed, Stellar received a double dose of good news. First, it was the announcement that XLM was one among seven coins that had been made legal in Thailand.
Then reports indicate that Stronghold, a StellarLumens-based platform will soon launch its first USD anchor. It means you can deposit and withdraw USD via the anchor. Users are also exposed to access to a number of digital assets on the SDEX.
A while ago, the team announced that there are nine (9) new projects building on the Stellar network. They include REM Loyalty, Swych, TillBilly, FlipNpik, Cross Hedge, SVPER, SID, LocalXpose, and Pedity.
Even though the market is still uncertain, this is an opportunity for the coin to rally and consolidate its image as a top platform. If it fails to realize any growth from this, then Stellar (XLM) maybe does need to find a good “therapist”.