It hasn’t been a good start to the year for Stellar (XLM). Since early January, it has dropped in value and is sliding lower on market cap rankings too. This massive drop in the value of Stellar (XLM) leaves one question, is Stellar (XLM) worth holding in 2019? Well, the answer to this is Yes! Here’s why.
For starters, the entire market is down at the moment. Unless you are holding stable coins, there is no crypto that can be described as safe at this moment. Even Bitcoin (BTC) which is the key market driver is at risk of going lower. It has been oscillating around key long-term support at $3200 for some time now. In the event that it breaches it, then chances of Bitcoin (BTC) going to under $2000 are quite high.
As such, this scenario is not unique to Stellar (XLM). The best part is that the entire crypto ecosystem is growing. This means that at some point, the tide willl change, and the market will start rising again. In essence, scooping some Stellar (XLM) at these lows could be a huge opportunity to profit in the long run. That’s because, if the market turns bullish and prices retest 2017 highs, cryptos like Stellar (XLM) could be extremely profitable for someone who gets in at current prices.
But one may argue that not every crypto will hit 2017 highs, even if the market were to turn bullish. Afterall, many of them are already running out of funds, and could be on their way out. Well, Stellar (XLM) is not one of them. Over the past one year, there has been huge developments in the Stellar blockchain. For instance, there has been an increased interest in stellar-based security tokens, and for obvious reasons. The ICO model is dead at this point due to an influx of scams in the market.
This means that the stellar blockchain could end up being a dominant platform in a world where the security markets adopt the tokenization model at scale. That’s not the characteristic of a blockchain that could be headed out. On top of that, the stellar blockchain is being used by IBM in transforming the trillion dollar cross-border payments market. While IBM may not use Stellar (XLM) for settlements, it is a positive, and a huge assuarance that stellar (XLM) is not going anywhere. Therefore, Stellar (XLM) may take a hit due to the prolonged bear market, but it will survive, and make it big in the next Bull Run.
Based on the above, it is clear that the Stellar blockchan is here to stay, and makes for a worthy hold in 2019. However, it pays to also understand a bit of technical analysis too. This is important in understanding the best price levels to accumulate Stellar (XLM) in anticipation of the next bull run. One thing is clear though, if at some point Bitcoin (BTC) retests $20k, Stellar (XLM) will make anyone accumulating at current prices very rich. That’s because, in such a scenario, even $1 Stellar (XLM) would be possible.