Good evening, friends, crypto enthusiasts and just good people!
Today our crypto laboratory accepts a new order - for the analysis of the Stellar Lumens token (#XLM).
As always, we will look into the card of the "patient" and conduct a full anamnesis of the history of its creation, as well as make a forecast about the immediate prospects of this "stars" coin.
By the way, our last "patient" - the American stablecoin Tether - has already fully worked out his forecast (the first growth goal) and is waiting for you to drop in for a cup of tea to support him with a like :)
Mr. Tether's card:
https://www.tradingview.com/chart/USDTRUB/dVhMoMZo-perspektivy-kriptodollara-tether-usdt-pered-zasedaniem-frs/
Well, we are now adjusting our operating room lamps and laying Mr. Stellar comfortably on the couch.
THE HISTORY OF THE CREATION OF Stellar Lumens
Stellar is a real-time currency trading platform. It was founded in early 2014 by Jed McCaleb and Joyce Kim as an offshoot of the Ripple cryptocurrency platform for payment systems and for the first time worked on the protocol of the same name.
The names Stellar and Lumens always go in conjunction with each other and are most often used as interchangeable concepts. However, they mean different things.
Stellar refers only to the network, the protocol, the system and the community as a whole. And Lumens (#XLM) is Stellar's own digital currency that powers the network.
The Stellar token is used to send, receive and trade with other assets.
The next stage in the development of the project was the creation and launch of the non-profit inactive fund Stellar Development Foundation, which provides financial support for new developments. The subsequent active development of Stellar Lumens allowed the project to become the fastest growing ICO platform in 2018, as well as to take the second position in the number of ICOs held in 2018, after Ethereum.
**
THE PRINCIPLE OF OPERATION.**
Stellar Lumens technology is a decentralized network of blockchain-based servers that operate independently. The Stellar blockchain is distributed among all interconnected nodes of the Stellar network without control from a centralized source. The principle of operation is almost identical to the Ripple technology, but it is aimed at a different contingent of users. Unlike Ripple, which works with well-known banking institutions and consortia, Stellar focuses more on individuals and emerging markets and has many options for using its technology. This allows people to use the Stellar network to conduct local and international transactions almost for free. In other words, Stellar Lumens helps to solve one of the main problems of the modern world – the provision of financial services to the non-banking population.
THE CURRENT FUNDAMENTALS and PROSPECTS OF XLM .
XLM's strength lies in the Stellar network and its current partnerships. The platform already has an impressive list of partners and has even been integrated into Samsung Mobile. Also, do not forget that in October 2017, the company announced a collaboration with IBM. In the same year, about 30 banks confirmed that they had agreed to use the Stellar blockchain for cross-border transfers.
As for the current technology development of the project, the current architecture of the Stellar Lumens network supports only 1000 transactions per second. However, this speed will not be enough if Stellar intends to become a universal solution for cross-border payments. Therefore, the Stellar team is working to increase this throughput to 5,000 transactions per second by the end of 2022, while developing a Layer 2 solution known as Starlight.
However, like any other token, in addition to the advantages, there are also negative aspects.
And despite the steady growth in the number of transactions and the total number of wallets over the years, the number of active wallets on the network has significantly decreased. Currently, there are 24,105 daily active accounts, but at the peak of 2018, this figure was 318,259.
The reduction in the number of active wallets in the Stellar network can be explained by its underdeveloped DeFi ecosystem. Even to this day, very few projects are working on Stellar. In this regard, the Stellar team has something to add and improve.
TECHNICAL ANALYSIS AND TRADING RECOMMENDATIONS.
In the last few months, the Lumens crypto coin has been in a strong bearish trend. During this time, the token has fallen by more than 80% compared to its record high. However, now the price is very close to the trend support line (green line) from the daily periods, laid at the lows of the price of 2020 and 2021x. After approaching the trend, the token quotes were able to overcome the current maximum futures market volume (Max volumes line) - "interception of the initiative" and rush to attack the nearest resistance line (red), plus the key psychological and historical level - 0.25 passes here.
If the price manages to break through this outpost of bears and gain a foothold above it (forming 123 pattern from the * level), the bulls' offensive will be able to continue up to the levels - 0.43 - the nearest resistance and 0.70 - the historical high.
Alternative scenario:
The return of quotes to the Max volume + breakdown and consolidation under the current support line will allow you to put on shorts to the level of - 0.12
*- I told you more about the 123 pattern in this video:
https://ru.tradingview.com/streams/gRrpeN1oB_3SU9m_uWrKl/
Enjoy watching and thoughtful investment decisions, Friends, I will be glad to discuss the idea in the comments!