Investors in the crypto world are giving more importance to Stellar (XLM) as Ripple and its founder are faced with yet another lawsuit. While investors are feeling skeptical about Ripple’s legal status as a potential security, IBM’s rumoured interest in Stellar’s blockchain has generated a lot of optimism among investors despite its low market performance, weak price action trading and a near-term bearish outlook. According to the recent buzz, IBM is going to launch its own cryptocurrency using the Stellar blockchain.
From the above chart, it is very evident that Stellar Lumens (XLM) is still trading in a falling wedge against USD. Falling wedges are generally considered as a bullish sign. Hence, the price action refers that further downside is likely before Stellar (XLM) can break out of the falling wedge, most likely to the upside. Relative strength index has dragged back above 40, but faces strong resistance for a breakout. Current technical indicators suggest an extended correction till mid-July or August 2018.
Near-term price action may mask the true enthusiasm of Stellar (XLM) backers and investors. Most of the investors have chosen Stellar or Ripple for cross-border and peer to peer payments industry. Some of them have invested in both to reduce the unexpected risk. But the recent headlines about Ripple made investors feel skeptical and made it clear to investors that XRP is not the asset to put new money in.
Even if Ripple enthusiasts like to claim that Ripple is not related to XRP, the fact remains unchanged that XRP is a creation of Ripple company and the company still owns billions of it. Recent incidents explain that Ripple has no real use case and some crypto analysts think that Ripple is promoting its token for speculative trading. Ripple made some headlines for giving away its tokens to promote a widespread ‘trading’ of XRP.
Stellar Lumens (XLM) is currently trading in a triangle against Bitcoin (BTC). The price action suggests that it will enter a decisive phase before the month of August. The price has just bounced off the support line and now seems to rise up in the short term. Earlier this year, Stellar (XLM) traded at a price of $1+ before plunging down to $0.17 a few days back. Stellar (XLM) is currently down 76% from its all-time high but up 730% for the last 1 year.
Stellar (XLM) now appears to be a promising investment for crypto investors. It has got all the potential to become the world’s largest peer to peer payments platform. In addition to this, Stellar (XLM) has proven to be efficient and scalable blockchain which can be incorporated by financial institutions and even central banks.
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