The crypto market has eased up after yesterday’s heavy selloff. Stellar (XLM) is one of the cryptos that are making slight recoveries in the day. There is a possibility that Stellar (XLM), like the rest of the market, will perform well going into the weekend, and possibly into next. This is premised on the fact that the stock markets have stabilized too.
Contrary to what most people had expected, a drop in the stock markets doesn’t mean that money will flow into crypto. If anything, they are more likely to move in the same direction in case of a recession. This is quite visible today where crypto has stabilized, just as the stock markets all across the world have stabilized too.
The stock markets are likely to remain stable going into next week, based on the announcement that president Trump will be meeting with his Chinese counterpart in November. It is expected that the trade war will be up for discussion and this seems to have brought in some calm in the markets and could be a catalyst for huge gains next week.
In the case of crypto, since it usually moves faster than the rest of the market, there is a strong likelihood that it could draw in investors, looking to take advantage of these low prices going into the weekend. Bitcoin is already showing signs of a pushback and is now back above $6300. As this momentum picks up, it is altcoins like Stellar (XLM) that are likely to make the most gains.
Why Stellar (XLM)?
In the last couple of months, Stellar has made significant gains, at some point pushing to a high of $0.33. Lately, it seems to have stabilized around $0.25, a level that it has held at for a few weeks. That’s an indicator that bullish sentiment has been consistently prevalent in Stellar (XLM), driven mainly by its growing reach in the banking industry. In essence, this sudden crash that has pushed Stellar back to a long-term support-level at $0.20 -$0.21 is a huge opportunity for long-term buyers, looking to take positions in stellar (XLM).
Besides, stellar (XLM) is in the middle of some big news at the moment. Just recently, StellarX was opened up to the public, and it is expected that it will lead to an explosion of tokenized assets running on the stellar blockchain. This was followed by the announcement by Pixel alpha a few days ago, that they would be using stellar in their derivatives exchange. Here is what Pixel Alpha had to say about this move.
“We can start with a simple use-case: OTC forwards with asset delivery on expiry. Stellar practically has this feature built in. The initiating party would generate a time-bounded multisignature account that both them and the counterparty can send their digital assets to. When the time-bound expires, each party can withdraw as initially agreed. This has exciting implications for when tokenization is more universally recognized as proof of ownership and entities are hedging the real-world assets that tokens represent.”
It’s going to be an interesting weekend and stellar (XLM) in particular. It could retest $$0.25 over the weekend.