2021 will be a breakthrough year for Stellar (XLM)

CONTENT

  • XLM rate has risen by almost 150% this week

  • In the second half of 2021, the XLM rate will exceed $ 0.47

  • The coin will update its all-time high in 2022.

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Stellar (XLM) has gained almost 150% during the week amid a large bullish trend. Positive fundamentals, including news of a partnership with one of Europe’s oldest banks, also fueled the rally.

Stellar (XLM) appears to have entered a long-term uptrend. The dynamics will continue throughout 2021 and will lead the coin to record highs.

What’s happening with XLM

Stellar is currently ranked ninth in the cryptocurrency rankings with a market cap of $ 6.4 billion. This week, the coin became the leader of growth, showing an increase of almost 150%.

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Stellar is run by a non-profit organization called the Stellar Foundation. It serves as an intermediary between fiat and digital currencies in transactions of any size. The project was launched in 2015, and since then more than 450 million transactions have been processed on the Stellar blockchain.

Stellar also successfully interacts with traditional players in the financial sector. In December 2020, Bankhaus von der Heydt (BVDH), one of the oldest banks in Europe, jointly launched stablecoins with Bitbond. With … More based on the Stellar blockchain.

The most realistic XLM / Stellar Price Prediction for the End of 2021 / 2022 based on Market data

The Bitbond CEO noted:

Bitbond has been working with the Stellar project since 2019, which is when we issued our first tokenized security approved by the German regulator, the Federal Financial Conduct Authority (BaFin).

China is already testing the digital yuan in real-world conditions, and European banks will eventually follow this path as well. In this case, Stellar can be at the forefront of revolutionary innovation. The BeInCrypto editorial team previously reported that Ukraine plans to create a digital version of the hryvnia on the Stellar blockchain

Long term levels

For much of 2019 and 2020, XLM’s technical outlook seemed bleak. After a bearish breakout in October 2018, XLM has consolidated below the $ 0.20 area. Sluggish price movements without significant volatility kept the coin in a narrow range.

XLM bottom formed on March 13, 2020 at $ 0.024, after which a sustained recovery began. Growth sped up in November, and XLM hit space speed this week.

As of this writing, XLM is correcting after testing $ 0.36 (0.382 Fibonacci retracement from all-time high at $ 0.91).

This is an important resistance as the coin must first break through Fibonacci levels, including 0.382, 0.5, 0.618 and 0.786 on the way to record highs..

The 0.5 level is especially important as it coincides with the $ 0.47 horizontal resistance area. Thus, as long as XLM holds below this level, the long-term trend cannot be considered bullish..

Meanwhile, the technical indicators on the weekly chart are still heading up despite the coin’s strong overbought. Stochastic (highlighted in green) is forming a bullish cross. If the process is complete, we will receive further evidence of further growth..

Source TradingView

Forecast for 2021

The rally from the March low suggests that it is likely wave 1 (shown in white below) of a five-wave bullish momentum.

2021 will be a breakthrough year for Stellar (XLM)

Given the pullback from $ 0.37 and a potential top in BTC, it can be assumed that XLM is approaching the top of the first wave. Thus, a correction will soon begin, after which the coin will resume growth..

Thus, after the completion of the second wave, the third wave will begin, which will carry XLM above $ 0.47, finally confirming the long-term bullish trend..

The potential target of the third wave is in the area of ​​$ 0.88. These are 2.61 Fibonacci projections relative to the first wave. Target growth levels: $ 1.20 and $ 1.53. These are 3.61 and 4.61 Fibonacci projections relative to the same wave, respectively.

However, the coin is unlikely to be able to end its bull cycle in 2021. It’s all about the duration of the first wave, which dragged on for seven months.

If it takes the same amount of time to form the second and third waves, then the third wave will end approximately in October 2021, and the fourth and fifth waves will leave for 2022.

Source TradingView

findings

XLM started to rally after hitting a low in March 2020. The new trend will ultimately drive the coin to historic highs.

We expect XLM to rise above the $ 0.47 resistance area in the second half of 2021 and test it as support. New all-time high to be reached in 2022.

Here you can read the previous technical analysis for XLM.

  • Disclaimer: Cryptocurrency trading involves a high level of risk and is not suitable for all investors. The opinion expressed in this article does not reflect the position of BeInCrypto.

Disclaimer

All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website..

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2021 will be a breakthrough year for Stellar (XLM)
2021 will be a breakthrough year for Stellar (XLM)
2021 will be a breakthrough year for Stellar (XLM)

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