fxs_header_sponsor_anchor

Stellar price holds at the threshold as bulls prepare for a 14% move

  • Stellar price is closing in on an extremely bullish triple-bottom pattern breakout to $0.1250.
  • The development of Stellar's new smart contracts platform, Soroban, is at an advanced stage.
  • XLMUSD may only achieve the forecasted move to $0.1250 if its on-chain volume keeps diminishing.

Stellar price is in the middle of validating an uptrend in the wake of its freefall from an extremely stubborn resistance at $0.1158. The cross-border money remittance token dodders at $0.1099 at the time of writing as bulls push for a move above the hurdle, as mentioned earlier.

Stellar releases update on the new smart contracts platform

The Stellar Development Foundation is developing a new smart contracts platform referred to as Soroban. According to the communication sent via Twitter on Wednesday, Soroban has been designed to enhance scalability for reliable access to finance rails. Users can quickly connect smart contracts to "Stellar's unparalleled on/off ramps."

Soroban will bridge developers and new audiences, with the latter having unmatched access to financial instruments. The foundation reckons that the platform's development has been fast-tracked, with Soroban expected to launch on the mainnet in the second quarter of 2023.

Smart contracts features have been known to elevate the status of crypto projects in the industry. Therefore, Stellar's position as a financial services platform will benefit immensely from the launch of Soroban. The blockchain's native token XLM is bound to increase in value owing to a potential increase in demand from users and developers.

The Stellar Development Foundation will likely go the extra mile and add a staking function, making XLM a highly competitive token.

Stellar price could validate a triple-bottom pattern

Stellar price has, since mid-October, danced between two unwavering support and resistance levels, resulting in the formation of a triple-bottom pattern, as shown in the chart below. This pattern is created by three relatively equal lows that should ideally lead to a break above resistance.

XLM/USD four-hour chart

The triple bottom is a highly bullish pattern that appears toward the tail end of a downtrend, like in XLM's case. As selling pressure weakens, increasing demand for the asset fuels a big bullish move – crowned by a break above the horizontal (neckline) resistance at $0.1158.

While triple-bottom patterns can be extremely rewarding, traders must wait for the price to break above the neckline resistance before going into long positions.

XLM could move 14% above its current market price, but the triple bottom will validate a 7.75% move from the neckline. This target equals the pattern's height and is drawn from XLM's potential breakout point at $0.1158.

It is important to treat the triple-bottom as a neutral chart pattern – without a bullish or bearish bias until it breaks above the resistance. For that reason, Stellar price is not out of the woods yet and could also drop 7.75% below the pattern's support, thus validating a downtrend.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.