🌎 Stellar Lumens Price Surge Sparks Interest Among Crypto Enthusiasts

Stellar Lumens has experienced a price increase for two consecutive days, sparking interest among cryptocurrency enthusiasts and analysts. On Wednesday, Stellar was trading at $0.105, reflecting a 6% increase from its lowest point in the month and a 36% rise from its July low.

Stellar’s Background and Key Partnerships

Stellar, established by Jed McCaleb, shares similar origins and objectives with Ripple. McCaleb, a former Chief Technology Officer at Ripple, founded Stellar, which has since gained recognition for its partnerships. Notably, Stellar has collaborated with Circle, the creator of USD Coin (USDC). As of July 31, the total supply of USDC on Stellar was $228 million.

Another significant partnership is with MoneyGram, enabling USDC recipients to access their cash at thousands of global locations. Additionally, Stellar powers Franklin Templeton’s OnChain U.S Government Money Market Fund, which has amassed over $402 million in assets. This tokenized fund aims to provide regular income to its holders.

Market Analysis and Future Predictions

Some analysts believe Stellar Lumens has potential for further growth. Jonathan Morgan, a lead crypto analyst, identified Stellar as one of the most undervalued cryptocurrencies in the market. Other undervalued cryptocurrencies mentioned include Algorand and Zcash.

Another analyst, Cryptosahintas, with a substantial following, predicted that XLM could rise to $0.73, which would represent a 600% increase from its current price.

Key Resistance Levels and Technical Patterns

For Stellar to achieve these optimistic forecasts, it must overcome key resistance levels. The token needs to convert the $0.1125 resistance point (July high) into support and then surpass the year-to-date high of $0.1626, approximately 55% above its current trading level.

On the technical side, Stellar formed a falling wedge chart pattern between March and July, a positive indicator in financial markets. However, there are fundamental challenges. Stellar’s Soroban blockchain platform has struggled to gain traction, attracting only six Decentralized Finance developers and $11.70 million in total value locked.