Stellar's price dropped more than 72% in 2022. Is Stellar a Buy, Sell, or Hold on the recent dip? CAPEX looks at Stellar's price predictions for 2023 and beyond.
The XLM/USD price has been decreasing steadily in 2022, following the bearish trend of the entire crypto market, despite the expansion of the project.
Stellar (XLM) has been dropping in value since the beginning of the year when it was around $0.27, and it was unable to gain momentum. During the November 2021 rise of the crypto market, Stellar had an underwhelming performance.
As of December 2022, Stellar (XLM) is trading at around $0.075, which is 91% lower than its all-time peak ($0.93) in January 2018. As with most cryptos, the general downtrend comes from the poor performance of the top cryptos, which are Bitcoin (BTC) and Ether (ETH), which have also seen a massive drop in their value.
The Stellar platform uses blockchain technology to allow the exchange of digital currency with fiat currency. Stellar lumens, the native coin of the network that is used to facilitate cross-border transactions, can be traded on trading platforms like CAPEX WebTrader under the symbol "XLM."
But what can we expect from Stellar in the future? What highs may the XLMUSD price hit in 2022? Will the Stellar price surge or plunge in 5 years?
This article aims to address all the queries related to Stellar price prediction for 2022 and beyond, fundamentals, and technical updates.
Summary of Stellar Lumens Forecast & Price Predictions
- Stellar price prediction today: the actual rally should face strong resistance at 0.10 and send the price back towards 0.06 levels during the first quarter as per charts and experts.
- Stellar price prediction 2023: while most experts forecast LINK coin can surpass 10 during the year, others said crypto winter could extend into 2023 and push Cardano price below 0.05.
- Stellar price prediction 2025-2030: most analysts point out that crypto investors will shift focus from speculative trading to the development and adoption of blockchains and applications powered by tokens with utility and cash flows.
Stellar Lumens Overview
Stellar was launched in July 2014 and it aims to close the gap between traditional finance and cryptocurrency. The blockchain allows fiat currencies and other assets to run simultaneously. This makes it easier to convert fiat currency to crypto. The Stellar blockchain was a hard fork from the Ripple blockchain.
The network's native currency is the Lumens (or XLM coin). The minimum balance required to use the network's native currency is one Lumen. Users also must pay a transaction fee of 0.00001 Lumens. The transaction fees are minimal and accessible for anyone, and they were implemented to avoid malicious activity on the network. Users can transfer money quickly and without paying extra fees by using low transaction fees.
Stellar Development Foundation (SDF) has partnered with many of the largest companies in finance and technology, such as Deloitte and IBM (International Business Machines), Stripe, and a dozen financial institutions as well as payment processors in Europe and Asia. The global network is decentralized and scalable, and financial institutions can issue assets and settle payments.
As of October 2021, Stellar became a MoneyGram and partner to facilitate global payment remittances. The proposed system uses Circle’s USD stablecoin USDC for efficient international transactions. Other smaller payment services also use the Stellar blockchain for facilitating remittance transactions all over the world.
In 2022, the Stellar Development Foundation (SDF) published its strategic roadmap. It includes their main development directions, which are to increase scalability, more network participation, and promote inclusion.
The Stellar ecosystem received many upgrades throughout 2022, including the Anchor Platform, an out-of-the-box solution to simplify your Stellar integration, and Soroban, the Stellar network’s native smart contracts platform. Stellar also incentivizes developers to build on the network, announcing a $100 million adoption fund in the autumn of 2022.
Related: How to Buy Stellar Lumens
Stellar lumen's value dropped more than 72% in 2022.
Stellar's native cryptocurrency, lumens, or XLM tokens, stands at the core of its system. It acts as an intermediary between transactions. The protocol converts your currency to Stellar Lumens and then to the requested currency to finalize the transaction. This project is more about individuals than institutions. It offers users access to global financial systems so that anyone can send money around the world.
However, Stellar’s versatility is a key point for developers. While the Bitcoin network can only conduct transactions with Bitcoins, Stellar is a decentralized system that allows transactions with any type of asset. The project team also focuses on transparency and efficiency.
Since the beginning of 2022, Stellar lumens (XLM) has been experiencing a bear market. It has declined, following the general trend of the crypto market. By the end of December 2022, Stellar lumens dropped to $0.075.
With 2023 already looking like another roller-coaster period for digital currencies, CAPEX looks at Stellar's price predictions from best-rated websites and experts.
Stellar Lumens Prediction 2023 and beyond
The Stellar Development Foundation (SDF) is a non-profit organization dedicated to developing the Stellar network. Its roadmap focuses on blockchain interoperability which remains a popular theme in cryptocurrency markets in 2023.
However, institutional investors tend to avoid Stellar (XLM) due to its similarity to the Ripple (XRP) token, which is still waiting for a favorable result in its SEC lawsuit in the US.
Meanwhile, Stellar lumens’ price struggles to regain its momentum. As of December 2022, Stellar lumens (XLM) trades at around $0.075
Stellar Lumens (XML) Forecast 2023
XLM price prediction site Wallet investor suggests that Stellar’s price will continue to drop and could reach an average value of $0.032 by the end of 2023.
DigitalCoin is more optimistic about its Stellar forecast. It predicts that the price of Stellar will average $0.19 in 2023.
The long-term forecast for Stellar from Price Prediction shows that the coin has an upward trend, and the average price by the end of 2023 could be $0.11.
CryptoPredictions has set an average Stellar lumens price target of $0.11 by the end of 2022.
According to Long Forecast, Stellar’s price could continue to decline in 2023, and the average price of Stellar by the end of 2023 could be $0.03.
The average consensus price for 2022 is $0.09, which would be a 25% increase from its current price of $0.075 per XLM. With expectations of rising around 25% by the end of the year, Stellar is included in the top 5 cryptocurrencies to explode in 2023.
It's important to remember that analysts’ forecasts can be incorrect when predicting Stellar prices. Analysts make projections based on a technical and fundamental analysis of the crypto's performance. However, past price performance does not guarantee future results.
You should do your research and remember that trading decisions are influenced by your attitude towards risk, market knowledge, and your tolerance for losing money. The consensus, when it comes to crypto, is to not invest more than you can afford to lose.
Stellar Lumens Price Prediction Today - Should You Buy or Wait for New Lows?
Stellar Lumens (XLM) is the native cryptocurrency of Stellar. As of the beginning of 2023, the market capitalization for Stellar (XLM) is around $2 billion. The price of Stellar lumens is $0.08. It ranks among the top 30 cryptocurrencies. There are 26 billion XLM coins in circulation, from a total of 50 billion.
Although the main purpose of Stellar is to be used as a payment method, the currency is not yet exploited at its fullest. We are waiting for more partnerships with other financial authorities to push crypto payments to the masses further.
As we seem to be deep into a crypto winter now, XLM technical indicators are looking grim. This is the case for almost all coins. It's difficult to predict the future as volatility is still high.
Stellar price chart shows what a crypto winter really means. A strong downtrend followed by a depressed market. However, the consolidation seen in the last months might be an accumulation pattern and not a re-distribution pattern. That should be signaled by a breakout of the descending channel seen on most cryptocurrencies.
For Stellar, the key support level is 0.10. A confirmed breakout might bring a change in the market sentiment and the beginning of a new uptrend in 2023.
While we can speculate about the potential price of Stellar over the next months and years, the truth is that Stellar still is a highly speculative investment. There is not many historical data to support these predictions. It is important to invest only what you are willing to lose and include some traditional investment instruments to build a strong portfolio.
Your investments should be small, and you should not place crypto investments above other financial goals, such as saving for retirement or paying off high-interest debt.
Stellar Lumens (XML) Price Prediction 2025
There are indications that the crypto market is entering a new era.
There is no doubt that XLM's long-term price prediction will rise as there is still optimism about the currency attracting more attention.
Industry experts and analysts predict that investors will be able to look at Stellar (XLM) price as an altcoin that can provide future investment returns. The Stellar price history and Stellar Lumens forecast may indicate that the Stellar price could be a dark horse in this race.
It is possible to speculate as well that the future Stellar Lumens prices will rise in the coming year. In 2023, it could be as high as $0.19. And according to expert forecasters, Stellar lumens could trade at an average value of $0.139 in 2025.
The most optimistic forecast for 2025 comes from DigitalCoinPrice, which predicts an average value of $0.32 per XLM, while WalletInvestor stands by the most pessimistic forecast, at $0.012.
Stellar Lumens (XML) Price Prediction 2030
Are you expecting Stellar to rise in value? The same applies to Stellar price predictions as it does to weather forecasts. The further we go into the future, the harder it becomes to try to predict the price of Stellar. The world of 2030 may be quite different from what we see now. What does 2030 hold for Stellar?
Many prediction platforms and fintech experts can’t make any estimation so far off into the future. But considering the few existing Stellar lumens forecasts for 2030, they suggest that Stellar's price will increase steadily. According to PricePrediction, Stellar lumens’ price can increase and reach an average price of $1.70 by 2030.
Is It Possible to Forecast the Price of Stellar Lumens?
Many price predictions for Stellar coin are flawed because they lack the necessary analytical support. Investors will always be attracted to a high price point, especially one that is on an upward price trend. Someone holding a cryptocurrency priced at $0.01 could easily believe that it will rise to $10,000 just because it sounds good.
The problem is that predictions can be made without any evidence or analysis. However, three types of analysis have been used in the financial world for a long time to try and forecast prices and the evolution of markets.
- Technical Analysis
- Fundamental Analysis
- Sentimental Analysis
XML Price Forecast using fundamentals
Investors in financial markets use fundamental analysis to study and evaluate the variables that impact an asset’s price.
You can assess the intrinsic value of a cryptocurrency to determine if it is undervalued or overvalued. This can be achieved by analyzing qualitative factors like the state of the economy and cryptocurrency market conditions, as well as the management and market capitalization of crypto companies.
Fundamental analysis can help traders determine the price of a cryptocurrency based upon a wide range of information. This could be a great way to make long-term investment decisions.
How to conduct a Stellar price prediction today using fundamentals?
Fundamental analysis is when you examine the fundamentals of cryptocurrency projects, from their market capitalization to the utility and value of the native token.
Do not confuse fundamental analysis and technical analysis. Fundamental analyses of cryptos are more qualitative and less tangible than statistical trends like price charts or historical market data.
The fundamental analysis of cryptocurrency is like that of traditional financial markets with more traditional assets such as stocks. It is not as important to focus on a company’s historical financial performance, financial statements, or balance sheets.
The following parameters can be used to help investors predict trends in crypto markets:
- Market capitalisation
- Total and circulating supply
- Token utility and use cases
- Community size
- The team of the crypto project
- The crypto's trading volume
- Crypto exchanges listings
- Partnerships with trusted institutions
- The latest news about the coin
- Government rules and regulations
It is important to remember that fundamental analysis can only give you an overview of cryptocurrency investments. You can better understand the project and the future changes in cryptocurrency prices by looking at all the information. To get a better picture, you can also refer to the company’s whitepaper.
You can also examine blockchain metrics which provide crucial information about a cryptocurrency's technology and processes.
Stellar Forecast using technical analysis
Technical analysis uses historical price charts and market statistics to examine and anticipate price changes in the financial markets. It is founded on the concept that if a trader can recognize historical market trends, they may anticipate future price trajectories accurately.
Whereas fundamental analysis focuses on an asset's 'real value,' considering both external and intrinsic elements, technical analysis is only based on an asset's price charts. To anticipate future movements, all that is required is the recognition of patterns on a chart.
The ability to recognize price trend cues in a market is an important part of any trading strategy. All traders must devise a strategy for determining the optimal entry and exit points in a market and using technical analysis tools is a popular technique for doing so.
Technical analysis software is now so widely utilized that many people believe it has established self-fulfilling trading rules: As more traders use the same indicators to find support and resistance levels, more buyers and sellers will congregate around the same price points, repeating the patterns.
In general, technical analysts look at the following broad types of indicators, formations, and theories:
- Price trends (trendlines, channels, Elliott Waves, Dow Theory)
- Chart patterns (double tops and bottoms, head and shoulders, triangles, wedges)
- Price action (pin bar, inside and outside bars, and different candlesticks chart patterns like Doji candle)
- Trend following indicators (moving averages, Ichimoku, Parabolic SAR, ZigZag, ADX)
- Volatility indicators (Bollinger bands, ATR)
- Oscillators (RSI, MACD, CCI, Stochastic)
- Support and resistance levels (Fibonacci retracements, pivot points)
One of the most prominent and extensively used momentum oscillators is the Relative Strength Index (RSI). The RSI measures both the speed and the rate of change in market price movements.
The RSI oscillator's values, which are usually monitored over a 14-day period, oscillate between zero and 100. When the Relative Strength Index falls below 30, it suggests oversold market conditions, and when it rises above 70, it shows overbought market conditions.
The XLMUSD chart above shows an example of divergence between price and the Relative Strength Index. Near the center of the chart, as marked by 2 arrows, the price of the cryptocurrency continues to test the high resistance, making a new high just before a market reversal to the downside begins. However, the RSI (plotted in the lower chart window) does not follow suit and makes a corresponding new low. Instead, it has already begun to turn to the downside during November 2021. The RSI is exhibiting a bearish divergence from price. As the chart’s subsequent price action reveals, this bearish divergence correctly forecasted an upcoming trend change.
Even more, the RSI signals a change in trend in advance. The same chart shows the XMLUSD trendline violation which happened in advance on RSI indicating the price is more likely to act the same way.
Stellar Lumens Price Prediction Using Market Sentiments
In finance, the term "sentiment" refers to a viewpoint or opinion about a market's condition. The sentiment of crypto market investors towards the asset is a description of their general emotions and attitudes. It reflects the collective psychology of all those involved in trading and developing cryptocurrency.
How investors feel about cryptocurrency can have a tangible impact on market cycles and the price. It can have serious implications if enough traders act on the ideas, thoughts, and feelings they share, regardless of whether they are based upon real-world data. This is evident in how tweets by Elon Musk have impacted Bitcoin's price (a bullish sentiment).
For analyzing the sentiment of cryptocurrency markets, there are many statistics you can use. The following statistics provide vital information about the movement and trajectory of cryptocurrency assets: funding rates, sentiment indices, social media, community analysis, and whale monitoring.
The funding rates are the monthly payments that traders receive based on price differences between the spot price of currencies and tokens and the price difference between cryptocurrency perpetual contracts. Positive funding rates indicate a bullish market.
A sentiment index is used to predict whether investors will act fearfully or greedily. It can be affected by volatility, market momentum, and investor responses to surveys. A fearful market can be an opportunity to buy if it is managed correctly. Conversely, a greedy market means that it is a good moment to sell.
Another crucial aspect for assessing sentiment in crypto markets is the community’s activity on social media, especially Twitter and Telegram. Investors would look for an active social network with meaningful interaction across platforms.
Whale monitoring is the process of keeping an eye out for big crypto players. A cryptocurrency whale is an investor who holds large-value transactions on multiple blockchains is called. Whale watchers spot major market participants' trades and trade accordingly.
Stellar Lumens Historical Prices
Shortly after the initial coin offering (ICO), on September 15, 2014, the Stellar (XLM) price was $0.003. It performed poorly and reached its lowest point at $0.001. In early 2018, XLM saw an all-time high, a short spike up to $0.94.
After an all-time high in early 2018, Stellar Lumens’s price fell again into a bearish position. By the end of 2018, it had fallen more than 90%, reaching $0.09, and it remained in that range until the end of the year. In 2019, Stellar’s highest price was $0.16. 2019 was a terrible year for Stellar Lumens prices, performance, market cap, and overall market performance. Most Stellar Lumens price analysts believed that this crypto was dead after such a dramatic price drop.
Stellar Lumenss' price-performance was slightly better in 2020. However, it dropped to $0.03 again during the global pandemic. It was still much more valuable than it was in the first two years of its existence. Later, XLM saw a sharp rise and reached resistance at the $0.2 level. The currency has experienced steady growth in 2021 with occasional corrections. By September 2021, the Stellar (XLM) coin reached a worth-noting level, peaking at $0.73. However, it fell sharply and was corrected below $0.2914. In 2022, Stellar’s price saw a few rises that followed after some important announcements of the SDK. Following the announcement of the smart contract in March, the price rose above $0.23, but it then continued to drop, reaching $0.075 in December 2022.
Since its launch, XLM traded between $0.001227 and $0.9381. This all-time high of $0.9381 was reached on January 4, 2018.
Is Stellar coin worth buying in 2022?
Stellar support international fiat payments using cryptocurrency, and Stellar Foundation is likely to sign more partnerships in 2022. This will create an increasing demand for Stellar which will likely go up in value in 2022.
How high can Stellar go in 2022?
Most cryptocurrency forecasters made optimistic predictions for Stellar’s price in 2023. One of the most bullish forecasts is $0.19, predicted by DigitalCoinPrice.
Will Stellar crash in 2022?
According to cryptocurrency forecasters, Stellar will not crash in 2022.
Does Stellar have a future?
According to blockchain experts, Stellar has a great future, as more financial services are using its infrastructure to facilitate international fiat transfers.
What will Stellar be worth in 5 years?
According to cryptocurrency forecasters, Stellar could reach $1 in the next 5 years.
What Stellar will be worth in 2025?
Considering most expert predictions, the price of Stellar could reach around $0.50 by 2025.
What Stellar will be worth in 2030?
Many prediction platforms and fintech experts can’t make any estimation so far off into the future. According to PricePrediction, Stellar lumens’ price can increase and reach an average price of $1.70 by 2030.
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