Yesterday, circle-invest, the Goldman Sachs-backed crypto platform, announced that they were launching crypto collections. Through these collections, Circle will be clustering cryptos with similar functionalities, allowing investors to buy the market, instead of cherry-picking individual cryptos.
So far they have three collections namely platforms, payments and privacy. Stellar (XLM) has been categorized underpayments together with bitcoin (BTC), Bitcoin Cash (BCH) and Litecoin (LTC). For Stellar (XLM) investors, this is a big deal, one that could see Stellar (XLM) exponentially gain in adoption for a number of reasons.
First, it will add to the overall demand of stellar (XLM). That’s because it is categorized in the same category as bitcoin (BTC), the number one crypto by market cap. As such, Stellar will get higher demand on the strength of being categorized together with bitcoin (BTC). It will pull-in investors who are drawn into crypto by bitcoin. Prove to this potential for uptake, is the increased uptake that Circle saw after it started a buy the market feature. According to the circle blog, the introduction of this feature saw uptake increase by over 30%. Now that they have introduced more focused categories, with bitcoin in the same category as stellar (XLM), it will drive up more demand for XLM.
Secondly, circle is backed by Goldman Sachs, which means that these collections are backed by solid research. In essence, Stellar making it to the category of payment cryptos means that it has a strong intrinsic value in this segment of the market. Investors could interpret this as an indicator that of all the payments cryptos in the market today, Stellar is one of the best. The impact of this could be an increase in the demand for stellar (XLM), even outside of Circle. It’s a profile boost that will serve to push up the value of stellar (XLM) in the market, going into the future.
Of course, this is supported by the growing influence of Stellar (XLM) in the banking industry. Through its partnership with IBM, stellar has made significant gains in this industry, and when combined with the increased demand that it is drawing in the market, it is likely to continue on an upside trajectory going into the future. As a matter of fact, Stellar (XLM) is one of the most stable cryptos in the market at this point, an indicator of its growing demand, and market depth.
Looking at Stellar (XLM) in the day, it has been trading in a stable range above the 55-day moving average at $0.243. That’s an indicator that even in this low volumes market, stellar (XLM)’s momentum is still upside. If it makes gains at this price level, chances are that stellar (XLM) could rise to around $0.252 in the day. That’s the 200-day moving average level, and a level that could offer significant resistance in the day.
From a more long-term perspective, stellar (XLM) formed a double bottom at $0.194 on the weekly charts, and has been on an uptrend from that point onwards. This is an indicator that stellar (XLM) is at the beginning of a long-term uptrend.
Since stellar (XLM)’s fundamentals are stronger than they were last year, there is a good chance that the current uptrend could take it way above last year’s highs, and probably test a valuation that is way higher than $1.