Stellar Lumens (XLM) Crypto Markets Await the Federal Reserve's Interest Rate Decision

The Stellar ecosystem is showing a significant increase, especially in the number of stablecoins. Data from DeFi Llama shows that the amount of stablecoins on the network has reached a record high of $350 million

Crypto markets are awaiting the Federal Reserve’s interest rate decision, which is expected to bring some price consolidation of Stellar Lumens near future.

Stablecoins on Stellar are rising sharply

The Stellar ecosystem is showing a significant increase, especially in the number of stablecoins.

Data from DeFi Llama shows that the amount of stablecoins on the network has reached a record high of $350 million, a far cry from this year’s low of $147 million.

This partnership with MoneyGram, one of the biggest players in the money transfer industry, further strengthens Stellar’s position. The collaboration allows users to send USD Coin (USDC) to MoneyGram users in any country covered by MoneyGram’s network.

Relationship with Ripple (XRP) Promises Upside

Stellar Lumens (XLM) is often considered the ‘little brother’ of Ripple (XRP). Both cryptocurrencies share similarities, such as their focus on cross-border payments and low transaction fees.

The latest price prediction for Ripple (XRP) shows the potential for significant price increases, especially if the Ripple ETF is approved by the SEC. This is expected to have a positive impact on the XLM price as well, especially with Canary filing for a spot XLM ETF.

Strong Technical Indicators Support XLM

Technical analysis shows very bullish indicators for Stellar Lumens (XLM). The falling wedge pattern formed on the daily chart shows two converging and declining trend lines, with a potential breakout as the two lines almost converge.

The Awesome Oscillator and Moving Average Convergence Divergence (MACD) indicators show a bullish divergence pattern. This pattern occurs when the price of an asset is declining, but the indicator is showing signs of strength, which can foreshadow a reversal in the trend.

The frequent bullish breakouts that follow this pattern suggest that XLM prices are likely to rebound, with a key resistance target at $0.6415, which was the highest peak in November last year, about 150% above current levels.

Conclusion

With significant stablecoin growth, close ties to Ripple (XRP), and favorable technical indicators, Stellar Lumens (XLM) is expected to experience significant price increases in the near future. Investors and market watchers should pay attention to these dynamics to make informed investment decisions.