A reasonably accurate prediction of the Stellar (XLM) exchange rate has always been more difficult than predicting the Bitcoin or Ether exchange rate. Stellar (XLM) is one of those coins that grew during the stagnation of 2020. And in 2021, XLM sometimes fell with the overall growth. Nevertheless, Stellar remains one of the twenty most promising and popular coins for several years.
The nature of the rally from the current low suggests that, most likely, this is wave 1 of a five-wave bullish impulse.
Given the pull-back from $0.37 and the potential top for BTC, we can assume that XLM is approaching the top point of the first wave. Thus, a correction will begin soon, after which the coin will resume growth.
Thus, after the completion of the second wave, the third wave will begin, which will take the XLM above $0.47, finally confirming the long-term bullish trend.
Stellar Lumens price depends on appreciation
The potential target of the third wave is in the area of $ 0.88. This is 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 the bullish cycle in 2021. It’s all about the duration of the first wave, which lasted for seven months.
If the formation of the second and third waves takes the same amount of time, then the third wave will end around October 2021, and the fourth and fifth waves will leave for 2022.
XLM began to grow after reaching a minimum in March 2020. The new trend will eventually bring the coin to historical highs.
XLM coin price prediction: Stellar Lumens’ role in managing state blockchains
We expect XLM to rise above the $0.47 resistance area in the second half of 2021 and test it as support. A new historical maximum will be reached in 2022.
Stellar is managed by a non-profit organization called the Stellar Foundation. It performs an intermediary function 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, together with Bitbond launched a stablecoin based on the Stellar blockchain.