A Stellar Lift-off? (XLM)

XLM Prices Can Double Because of IBM

 
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Latest Stellar Lumens (XLM) News

There is no doubt that IBM or better known as Big Blue is a respected authority in finance. However, with blockchain coming to age and vivid demonstration all round, it was only a matter of time before banks jumped in the bandwagon and adopt this revolutionary technology.

Read: IBM Closes another Deal For Its Blockchain Services

With ambitious plans of rolling out a cheap and fast settling platform the under-served or the unbanked can better access financial services without the need of going through an intermediary, Stellar is a direct competitor of Ripple but their focus is on the common man, not financial institutions.

By partnering with IBM and launching a pilot program back in 2017, Stellar’s strengths were highlighted. With the launch of IBM’s World Wire, which is a real-time global payment network designed specifically for regulated financial institutions leveraging on the Stellar blockchain, the platform will facilitate the cross-border movement of funds to countries where it is truly needed.

Also Read: FotonBank, the Next Generation Multicurrency Bank with a Difference

Although activation by participating bank is dependent on local rules, World Wide—launched yesterday– has the advantage of tapping in more customers—six new banks have submitted a letter of intent stating their plans of launching a stable coin—since it is available in 72 countries while supporting 47 countries with 44 banking endpoints.

However, a standout feature for World Wire is its ability to merge messaging, clearing and settlement in one unified blockchain network while simultaneously allowing users to dynamically choose from any of the cryptocurrencies supported as a tool for settlement.

XLM/USD Price Analysis

News of IBM officially launching World Wire should be a source of excitement that will subsequently prop prices. At the time of press, Stellar Lumens (XLM) is up 12.3 percent from last week’s close and one of the top performers in the top ten.

By registering 5.9 percent in the last day, the coin is outperforming Bitcoin and its direct competitor XRP. And there are hints of future gains if candlestick arrangements are anything to go by. Note that XLM is trading within a bullish breakout pattern after Mar 10 high volume upthrust above 8 cents. With candlestick banding along the upper BB at the back of decent volumes, the short-term price trajectory has been set.

It is likely that bulls will continue edging higher and as long as prices are trading above 8 cents, aggressive traders should seek for better entries (above 10 cents) in lower time frames. Reasonable targets would be at 15 cents and assuming the launch of World Wire positively affect prices spurring demand, any close above 15 cents (our trading range) could trigger another wave of buy pressure driving prices towards 30 cents.

All Charts Courtesy of Trading View—BitFinex

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.