Stellar Lumens XLM/USD is trading slightly above $0.1. Compared to its all-time high of around $0.79 in May 2021, this represents an 87% drop. This thesis answers the key question of whether investors are good at buying Stellar Lumens at low prices.
Stellar Lumens prides itself on being an open network for safe storage and money transfer. The platform simplifies the process used to create, transfer and exchange all forms of digital money.
This also includes dollars, pesos, and Bitcoin. The network aims to enable all global financial systems to work together.
Undoubtedly, as digital payments grow, Stellar Lumens will follow suit. This was evident early last month when Novatti Group hired Stellar for a new stablecoin. Stellar, along with Ripple, was selected by the international payment network for the project. The stablecoin will be pegged to the Australian dollar. Last year, Stellar also partnered with payments giant MoneyGram. The partnership will allow customers to convert their digital money into cash. Such developments highlight the vital role of Stellar and its native XLM token in the blockchain.
Stellar Lumens continues downward trend
From the weekly chart, Stellar Lumens has yet to find a lower price. An RSI reading of 31 suggests that cryptocurrency is oversold. However, the token has yet to find support which currently stands at $0.07. We don’t think it’s time to buy Stellar Lumens yet, although the current level remains attractive. The price will potentially slide down to find the next support at $0.07.
Conclusions
Stellar Lumens lacks a catalyst for a potential rally. Cryptocurrency remains viable in line with the growth of digital payments and blockchain. The recent collapse could continue until the cryptocurrency reaches $0.07.
