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Investing in Stellar Lumens: the bull and the bear case (January 2019)
Stellar (XLM.X) is trading at $0.11, down -11.75% from yesterday. XLM has been volatile lately, with prices hovering between 10 and 13 cents. As this is the fifth most valuable cryptocurrency with a market cap of over $2 billion, investors are wondering if now may be a good time to invest in it.
Here are some questions we frequently get about Stellar when it comes to investing in it:
- Is Stellar currently a buy or a sell?
- Should I sell or hold Stellar today, if I purchased it 3 months ago?
- Is Stellar a good buy/investment opportunity?
We'll look at both the reasons to buy and sell Stellar Lumens. First, let's look at the bull case:
1. Stellar is in the final phase of developing its own decentralized platform named SDEX which will alter the network's core protocols. This platform is viewed as essential since it will remove anomalies related to processing sell and buy orders.
Currently, XLM users can create a number of "shadows" that add up to more than the total holdings. Because of the new protocols for buying and selling, XLM users will be able to transact only the exact amount that their wallets can hold. The protocol will prevent the manipulation of buy and sell transactions in the order book by keeping the track of account actions.
2. Stellar could be Ripple's strong competitor in the payment industry. IBM launched a project named Blockchain World Wire to make payments easier and cheaper for consumers and merchants in the South Pacific. The Stellar Lumens blockchain was used for this project because of its scalability, a very professional team, the transparency of token ownership and the ability to support any type of asset.
IBM Blockchain World Wire drives the speed of transaction processing. Similar to xCurrent and xRaypid, Stellar Lumens (XLM) will be the IBM World Wire platform's native currency.
Analysts also believe that Stellar will succeed because IBM does business with 90% of the world's banks.
3. People who do not have a bank account but need financial services find Stellar quite helpful because it is partnering with essential remittance providers such as Coins.ph and Tempo.
Now let's look at the reasons to sell Stellar Lumens (a.k.a., the bear case):
1. Since there is a consensus in the investor community about Stellar being a good investment, people tend to turn a blind eye on anything that could be wrong with it, including ambiguous airdrops in the past and the potential lack of transparency regarding the way it works.
2. The airdrop of 18 billion tokens which represented $400 million gifts at the time of the event, might have been repurposed for operational uses, salaries, and bonuses, likely having a dilutive effect on the token holders.
3. The cryptocurrency low trading volume means potentially a lack of interest in XLM.
Stellar Lumens price analysis, prediction and news bites
Stellar (XLM.X) is trading at $0.26, up 1.96% from yesterday. XLM/USD is retracing after a recent bull run, upon which the cryptocurrency appreciated 25%. This small near-term correction can be viewed a "jump-in" incentive for bull traders.
XLM is the sixth largest cryptocurrency when it comes to market capitalization. Its price appreciation and the partnership with IBM are positive signals to investors. Also, XLM will be listed on Coinbase, which gives the cryptocurrency a significant boost.
There are some notable developments on the marketing side for Stellar Lumens. A cryptocurrency wallet provider Blockchain is putting together a crypto giveaway: the company intends to distribute $125 million in Stellar Lumens (XLM) to Blockchain wallet users who sign up for the airdrop. The first batch of coins will be distributed this week, but the amount of XLM at each airdrop is not known at this point in time. The airdrop program is aimed at attracting new customers.
What is the near-term price forecast for Stellar Lumens? Here are the major technical indicators:
- MACD of Stellar Lumens is currently in the bullish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is below 50, but still in the neutral zone. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $0.23;
- A new major resistance level is forming at $0.29.
Stellar Lumens(XLM.X): what do the bulls say?
Stellar (XLM.X) is trading at $0.21, down 3% from yesterday. The cryptocurrency has lost more than 25% of its value since the recent late-September peak. What is the price forecast of Stellar Lumens? What do the bulls say about Stellar?
XLM's price has been volatile lately; however Stellar Lumens is still the sixth largest crypto by market cap.
The Stellar platform is full of features that excite investors. StellarX allows trading of fiat currencies, tokens, and other assets. It is free and charges only 0.00001 XLM for spam prevention (this amount is reimbursed weekly). By design, StellarX is just a general user interface that helps with the utilization of the Stellar open marketplace. It enables faster transfers without the need of handing over the keys to a trusted third party.
There are also some important commercial developments around Stellar Lumens. XLM has also been added to the Circle Invest app. In addition, Stellar launched Lobstr wallet, which features a custody platform for retail investors, who get optimum security for cryptocurrencies they wind up trading.
Other companies are also adding Stellar Lumens to their portfolios. ICO services platform TokenSoft has officially launched support for projects on the Stellar lumens protocol. And Coinbase said it's experimenting with Stellar's XLM.
What is the sentiment towards Stelar Lumens? Here are the major technical indicators:
- MACD is in the bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is at 41, indicating a neutral level. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $0.20;
- A new major resistance level is forming at $0.29.
Stellar Lumens: a bull case
Stellar (XLM.X) is trading at $0.22, up 2% from yesterday. Stellar is the sixth largest cryptocurrency with a market cap of $4.19 billion dollars. The altcoin has been 'quiet' lately, so traders are wondering about Stellar's price forecast--and whether the crypto is ready for another pop.
What are the factors contributing to a high probability of a bullish trend in the upcoming period? Let's look at the macro picture.
Stellar Lumens is developed on a stable IBM-based platform. The Big Blue will develop its own digital token named State coin on the Stellar platform.
The digital coin is positioned third among the most popular cryptocurrencies for Bitcoin IRA, which is a platform that amalgamates digital assets with retirement accounts of individuals. The IRA retirement plan includes setting up a custodial account to benefit the customer, and it is further strengthened by a retirement pension contract issued by a life insurance company. Bitcoin IRA enables taxpayers to make investments in funds that are exempted from taxes while they are deposited and the funds are taxable only when they are withdrawn.
Coinbase, the US-based cryptocurrency exchange will include Stellar in its trading platform. Thus, the cryptocurrency will become more accessible.
Also, Shift Markets has entered into a partnership with Lightyear which will support the integration of the Stellar technology in the cryptocurrency market. The adoption of XLM is likely to get a boost from this because the cryptocurrency will get listed on a number of exchanges. Shift Markets will also enable Stellar trades against various fiat currencies from all over the world.
Stellar aims to broaden its user base by targeting growth in the Middle East countries and Southeast Asia. The digital token gained the rights to be used in the regions under the jurisdiction of Sharia law.
Here are the major technical indicators:
- MACD is placed in the bullish zone. MACD (Moving Average Convergence Divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is at level 40 which indicates the cryptocurrency is oversold. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at $0.17.
- A new major resistance level is forming at $0.30.
11 best cryptocurrencies for August 2018
After a significant dip in the second quarter of 2018, cryptocurrencies are becoming popular again among retail investors, appearing in the mainstream media headlines every day. There are a few cryptocurrencies that have grabbed investors' attention. What are the best cryptocurrencies to invest in in August this year?
Before we share with you our top 11 list, here is our little hack: use the cryptocurrency investment idea tool to stay up-to-date on the best investment opportunities in the altcoin space.
Bitcoin is by far the most popular cryptocurrency today, garnering a plenty of investors' attention. We think Bitcoin may be a good opportunity to invest in now because:
- It is the most established cryptocurrency.
- Stock market volatility and political uncertainty are good for Bitcoin. In general, political unrest is not good for the stock market, because its value is tied to established companies that depend on government services. But given the political climate across the world, and decreasing faith in government institutions, Bitcoin is becoming increasingly more popular.
- It's easy to invest in it: investing in Bitcoin is as simple as buying a stock on an online exchange. You can use also a zero-cost brokerage such as Robinhood to do that.
Stellar is also based on the blockchain technology. It connects banks, payments systems, and people with a goal to move money quickly, reliably, and at little or no cost. Here are the main reasons why one should consider investing in the cryptocurrency now:
- Stellar offers low-cost transactions and accounts. 1 USD will cover about 400,000 transactions, and there are various licensed exchanges where Stellar Lumens can be purchased.
- There is a good market opportunity for the cryptocurrency as Stellar is the first distributed ledger protocol which received Sharia compliance certification in the money transfer and asset tokenization space.
- Security is one of the main focus areas for Stellar, and the company solved security-related challenges in a very creative and effective way. Stellar's nominal base fee, paid by transaction initiators, deters malicious attacks that can flood the network. Whenever there is a suspicious account submitting transactions, this base fee increases.
Stellar (XLM.X) is trading at $0.27, down by 0.75% from yesterday.
IOTA has a market capitalization of $2.5 billion USD today. It focuses on the emerging machine-to-machine (m2m) economy of the Internet-of-Things (IoT) and other applications where a scalable decentralized system may be warranted.
Unlike other cryptocurrencies that are based on the blockchain technology, IOTA makes use of its unique infrastructure known as Tangle. We think IOTA is a good investment opportunity now, because of the following reasons:
- It has good scalability, no-fee transactions, and no blocks. It targets the up-and-coming market opportunity called the Internet of Things (IoT), which could reach more than 1 billion transactions by 2020, thus necessitating a secure, cheap and scalable micro-billing mechanism for everyone.
- Its partnerships with the mainstream companies such as BOSCH, Volkswagen, and Porsche seem to be very promising.
- It can be easily bought in a hasslefree manner using many exchanges (e.g., Coinhako). With the growth in the ecosystem every day, buying or selling IOTA will become even easier.
IOTA (IOT.X) is trading at $0.91, down -2.8% from yesterday.
EOS is one of the most used blockchains in the world today. It has a market capitalization of $6.3 billion USD.
EOS is a blockchain project that enables horizontal scaling of decentralized applications, allowing developers to efficiently create high performance distributed applications. It is a good investment opportunity because:
- It is simple to use, and accounts are easily recoverable in case of security breaches. This is very helpful for the mainstream public that doesn't have much experience with private keys and account security issues.
- The EOS network is pretty efficient with handling volume bottlenecks on high transaction days.
- EOS has zero transaction fees. When a smart contract is executed, EOS requires the user to stake tokens which are returned back to him or her after the execution.
EOS (EOS.X) is trading at $7.04, down by 3.68% from yesterday.
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. It is one of the most promising coins in the crypto world and one of the best long-term investment choices for crypto investors because of the following reasons:
- Since many Initial Coin Offerings (ICOs) intend to release their tokens on the Ethereum network, its price is expected to appreciate over time.
- It has the potential to transform the financial system just like Uber and Airbnb did in their own industries. The Casper and Sharding technologies depict significant milestones in its development.
- A decreasing trust in the traditional financial markets is prompting traditional investors to look into the most established cryptocurrencies such as Ethereum.
Ethereum (ETH.X) is trading at $418.08, down by 1.82% from yesterday.
NEO is the first Chinese cryptocurrency to be globally accepted. Founded in 2014, its mission is to reinvent the way commerce is done.
NEO entered the top 15 coins by market cap and its capitalization is north of $1.7 billion today. We consider it to be a good investment option because of the following reasons:
- NEO is not just a cryptocurrency, but also a project that helps in the creation of digital assets, smart contracts, and other applications on its blockchains.
- In the NEO platform, a straightforward transfer of shares, equity, and assets is possible because users are able to issue and trade assets. In order to prove an asset's ownership, tokens are distributed.
- The platform is powerful enough to process 10,000 transactions per second, so there is virtually no transaction latency. This capability attracts a huge number of partners from all over the world, besides China.
NEO (NEO.X) is trading at $29.19, down by 2.89% from yesterday.
NEM is a blockchain built for enterprise-grade performance. Here are the reasons to invest in NEM now:
- Compared to Bitcoin, NEM has more real-time case uses.
- It is the best option for portfolio expansion. No programming knowledge is needed to use the platform as it is quite user-friendly.
- With cryptographic signatures, NEM is capable of acting as an authentication and notary-type service. It is targeting the retail industry with its blockchain technology. The customers' loyalty points can be converted into money which would reduce the shortcomings such as mistakes in the loyalty points program.
NEM (XEM.X) is trading at $0.16, down by 2.08% from yesterday.
It is one of the popular cryptocurrencies among the crypto traders. XRP offers banks and payment providers a reliable, on-demand option to source liquidity for cross-border payments. XRP consistently handles 1,500 transactions per second and can scale to handle the same throughput as Visa.
We consider Ripple to be a good investment option because of the following reasons:
- It is used in the real world today to enable high-speed and low-cost money transfers worldwide.
- Ripple is going to build more financial market partnerships in the upcoming period, which means its applicability will spread over time.
- xRapid, used for payment providers and other financial institutions that want to minimize liquidity costs, is gradually being adopted in the market. It can complete international settlements in a short span using XRP as a bridge currency.
Ripple (XRP.X) is trading at $0.44, down by 2.71% from yesterday.
It was created by Charlie Lee with the intent to make a lighter version of Bitcoin. Litecoin is a peer-to-peer currency that enables instant, close-to-zero cost payments to anyone. Here are the reasons why it may be a good investment option now:
- A Bitcoin transaction needs 10 minutes to execute, whereas Litecoin takes around 2.5 minutes. The transaction cost for Litecoin is smaller compared to Bitcoin: $0.23 vs. $2.83.
- This digital currency can be bought easily. Because of its popularity, it is traded on Coinbase (the top digital currency wallet and exchange).
- Litecoin was the first crypto asset to be traded on eToro. It's potentially on the upside because of its robust usage, evidenced by the number of active addresses per day.
Litecoin (LTC.X) is trading at $77.47, down by 0.78% from yesterday.
10. Ethereum Classic
Ethereum Classic is the continuation of the original Ethereum blockchain, prior to the July 2016 DAO hack. Here are the reasons why it may be a good investment option now:
- Currently, Ethereum Classic processes 48,000 transactions per day and is soon expected to reach the 100,000 mark, upon being licensed on Coinbase.
- The Ethereum Classic Development Team (ETCDEV) has big plans around IoT, since Ethereum Classic has the most secure blockchain. There is a pretty decent probability that the company will capture a share of the IoT market. ETC's scalability will be enhanced after the inclusion of side chains.
- Its partnership with a South Korean exchange Zeniex will help ETC enter the Asian market per Memorandum of Understanding (MoU) signed between the two companies.
Ethereum Classic (ETC.X) is trading at $15.21, down by 5.26% from yesterday.
11. Binance Coin
Binance is one of the largest and most powerful cryptocurrency exchanges with a market cap of about $1.5 billion USD. Reasons for investing in Binance Coin include:
- Binance processes about 1.5 million orders per second and over $1 Billion per day. The company's native coin BNB has been the best performing coin since July 2017 (its inception time).
- The interface is user-friendly, so investors can enjoy a seamless trading experience.
- The Binance exchange is one of the most secure exchanges in the world, so the chances of a hack or malicious cyber attack are significantly reduced. Also, its stability provides assurance to its users.
Binance Coin (BNB.X) is trading at $13.61, up 1.11% from yesterday.
Over the last 30 days, BNB.X lost 3.43%, which is 24.08 percentage points lower than the 30-day return of Bitcoin (BTC.X).Do you want a daily updated view of cryptocurrency news, price analyses and speculations? Check out Finstead Bites, to get your scoop on cryptocurrencies and make your next bet.
Stellar Lumens (XLM): a bull case
Stellar (XLM.X) is trading at $0.27, up 0.29% from yesterday. Stellar Lumen's price has come down from its recent highs, but bullish pressure may be kicking in soon. XLM is certainly in the correction mode.
What is the Stellar Lumen price forecast? What do speculative investors need to know?
Crypto prices seem to be like a living roller-coaster these days. The crypto community is looking out for the latest news regarding developments in infrastructure and collaborations for any altcoin, including Stellar.
There are some positive developments related to Stellar: its partner SatoshiPay, a London-based company which processes micropayment transactions, is going to start its Initial Public Offering (IPO) on AIM. The AIM is a sub-market on London Stock Exchange. SatoshiPay chose to get listed on AIM because it will be able to raise development capital after the IPO.
IBM's "stable coin" will run on Stellar Lumen's platform and will be supported by the blockchain technology. This will help with Stellar's institutional adoption and credibility in the investment community.
Stellar Lumen's partnership with TransferTo will promote the international money transfer, through which people in more than 70 countries will be able to send and receive money in a fast and efficient manner. In addition, Coinbase announced that it would explore adding XLM to its platform.
How will the price move in the new few hours and days? Here are the major technical indicators:
- MACD is moving towards a bearish zone. MACD (moving average convergence divergence) is a trend-following momentum indicator that shows the relationship between two moving averages of prices. MACD is calculated by subtracting the 26-day EMA (exponential moving average) from the 12-day EMA;
- RSI (relative strength indicator) is dipping into the oversold territory, so we may we some bullish pressure over the course of next few days. RSI compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security;
- A new major support level is forming at 0.23;
- A new major resistance level is forming at $0.30.