Ripple competitor Stellar (XLM) is announcing plans to roll out smart contracts later this year.
Stellar Development Foundation (SDF) ecosystem head Justin Rice says smart contracts will enable a new suite of products and services on Stellar.
“There’s a lot of work to be done to get there, but at SDF we’re committed to researching and shepherding the development of the code and creating community engagement around an implementation.
The goal is to have Stellar remain one of the most accessible networks for developers so they can deliver high quality and safe applications to their users, while also allowing it to adapt and respond to the competitive blockchain landscape.”
Smart contracts are coming to Stellar. pic.twitter.com/jwMnsvod5T
— Stellar (@StellarOrg) January 25, 2022
Stellar is an open network for storing and moving money. The project’s native token, XLM, is used as a bridge currency between two fiat currencies when sending money abroad. XLM is trading at $0.192945 at time of writing, down 2.37% in the past 24 hours.
Tomer Weller, the vice president of tech strategy at Stellar, outlines the rough timeline for smart contract implementation in a new tweet.
“We’re aiming for a feature-complete test network by the end of 2022. Ultimately, the ecosystem will decide if and when to turn on smart contracts on Stellar.”
In October, the SDF announced a new partnership with the payments giant MoneyGram to use the Stellar blockchain to facilitate cross-border payments.
MoneyGram had previously entered into a partnership with Ripple, a Stellar competitor, in June 2019 for foreign exchange settlements and cross-border payments.
However, the payments giant suspended its use of XRP payments this past February in the wake of the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple.
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Institutional asset manager Grayscale has announced it will be converting its GBTC Trust into an exchange-traded fund (ETF) once the United States Securities and Exchange Commission (SEC) has “comfort” with recently-approved Bitcoin futures ETFs.
In a Monday Twitter thread, Grayscale communications director Jennifer Rosenthal said the asset manager would proceed with offering an ETF when “the SEC has formally expressed their requisite comfort with the underlying Bitcoin market.” The offering would convert the asset manager’s Grayscale Bitcoin Trust (GBTC), first listed in 2013, into an ETF.
“Once there’s official and verifiable evidence of the SEC’s comfort with the underlying Bitcoin market — likely in the form of a Bitcoin Futures ETF being deemed effective — the NYSE Arca will file a document called the 19b-4 to convert $GBTC into an ETF,” said Rosenthal.
The announcement follows ProShares announcement that its Bitcoin (BTC) futures-linked ETF will begin trading on the New York Stock Exchange under the ticker BITO starting Oct. 19. Filings with the SEC show the regulator has also accepted the registration request for shares of Valkyrie’s Bitcoin Strategy ETF to be listed on the Nasdaq and may accept others in the near future — the SEC currently has several crypto ETF applications under review.
Related:Grayscale adds SOL and UNI to Digital Large Cap Fund portfolio
Grayscale also added three cryptocurrencies available for trading through its suite of crypto investment trust products. The firm said its Grayscale Zcash Trust, Grayscale Stellar Lumens Trust and Grayscale Horizen Trust were now listed on the OTCQX Best Market under the ticker symbols ZCSH, GXLM and HZEN, respectively.
According to Grayscale, the three trusts are not subject to registration and disclosure requirements from the SEC. The vehicles provide a way for investors to gain exposure to the tokens without directly investing in them. Grayscale offers six other crypto investment products with exposure to Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), Ethereum Classic (ETC) and Litecoin (
The Stellar Foundation has partnered with MoneyGram to enable near-real-time settlements.
XLM gained over 19% in market value following the announcement.
Stellar may now be bound for a brief correction before possibly higher highs.
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The Stellar Foundation is making significant strides to grow the utility of the XLM ledger. A new partnership with MoneyGram aims to enable customers to convert digital assets into cash seamlessly.
MoneyGram Leverages the Stellar Network
MoneyGram has announced that it has teamed up with the Stellar Development Foundation and Circle to create a bridge between digital assets and sovereign currencies. The cross-border peer-to-peer payments and money transfer company aims to enable near-real-time settlements using blockchain technology and stablecoins.
Customers will have the ability to convert USDC to cash and vice versa, leveraging the low fees and speed of the Stellar network. The integration is intended to boost the adoption of blockchain technology while increasing the utility and liquidity of cryptocurrencies, according to Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation. She said:
“This partnership is a shining example of how blockchain technology and stablecoins bring new opportunities to global customers and enhance the existing financial system… giving [customers] access to fast and affordable digital asset services that may have previously been out of reach.”
Although the new services are scheduled to go live in select markets with further international expansion in 2022, market participants have reacted positively to the news. XLM has surged by 19% in the past few hours to reach a high of $0.37.
XLM Looks For Liquidity Before Advancing Further
XLM’s price action appears to have been contained within an ascending parallel channel over the past two weeks.
Whenever Stellar rises to this technical formation’s upper boundary, it tends to be rejected and retraces to the pattern’s lower edge. From this point, it tends to rebound, which is consistent with the characteristics of a parallel channel.
The cross-border remittance tokens recently reached the channel’s upper trendline, indicating that a retracement to the middle or lower trendline may be underway. These crucial areas of support sit at $0.35 and $0.33 respectively.
Source: TradingView
It is worth noting that further buying pressure could invalidate the short-term pessimistic outlook and lead to more gains. A break of the $0.38 resistance level could result in a bullish impulse toward $0.41 or even $0.43.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
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This project is an enigma. On the one hand, Stellar is not for profit, it doesn’t have owners or shareholders, and strives to be somewhat decentralized. On the other, Stellar is a compliance-focused protocol, and its directors often meet with shadowy organizations like the World Economic Forum. According totheir website, the protocol seeks “to unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered.” Fine, but, at what cost?
Related Reading | Stellar To Power VISA’s New Partnership, XLM Begins Breakout
According to the legend, Stellar is a Ripple fork. However, as you’ll see below, that’s not exactly true.Founder of the infamous Mt. Gox cryptocurrency exchange and co-founder of Ripple,Jed McCaleb, launched Stellar in 2014. Joyce Kim, a lawyer, was his partner in the venture. Stripe financed the initial operation. The native currency of the whole Stelar ecosystem is called Lumen or XLM.
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Stellar’s Mission And Approach
The recently appointed CEO and Executive Director of the Stellar Development Foundation, Denelle Dixon, was recentlyinterviewed by Securities.io. “The vision is big: Stellar and SDF hope to unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered,” she told them.
Onits website, Stellarjustifies its existence by telling us. “The way the global financial establishment is structured today, people are born into an economy just like they’re born into a political system. Stellar is a way out: it lets people participate in a worldwide, stable, financial network regardless of where they live.”
The controversial aspect is Stellar’s approach. It’s completely opposed to the cryptocurrency ethos. The company wants to build a bridge between the traditional banking system and the cryptocurrency space, but by following the traditional banking system’s rusty rules. “The software has always been intended to enhance rather than undermine or replace the existing financial system.”
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In other words, Stellar aims to provide a platform with which all financial actors can interact without any friction. All financial actors that are properly identified and approved by the legacy system, that is.
What Is The Stellar Consensus Protocol?
As a consensus mechanism, Stellar doesn’t use Proof-Of-Work or Proof-Of-Stake. It uses its own Stellar Consensus Protocol (SCP.) For a formal definition, let’s quotethe paper that Stellar presentedat the Symposium on Operating Systems Principles. How did Stellar solve the Byzantine general problem?
“With SCP, each institution specifies other institutions with which to remain in agreement; through the global interconnectedness of the financial system, the whole network then agrees on atomic transactions spanning arbitrary institutions, with no solvency or exchange-rate risk from intermediary asset issuers or market makers.”
And, what does the Stellar Consensus Protocol accomplish exactly?
“SCP lets Stellar atomically commit irreversible transactions across arbitrary participants who don’t know about or trust each other. That in turn guarantees new entrants access to the same markets as established players, makes it secure to get the best available exchange rates even from untrusted market makers, and dramatically reduces payment latency.”
For the system to function, Stellar relies on Federated Byzantine Agreements. For a description of what those do, let’squote Bit2meAcademy:
“For the FBAs to function properly, participants must wait for the majority to reach a consensus. In this way, participants know which transactions are most relevant before starting to settle them. So when the majority of the network takes a position, the network accepts the transaction and makes it unfeasible to roll it back for an attacker.
In other words, the Stellar Consensus Protocol tends towards centralization and just ignores most of the problems that Proof-Of-Work solves. It does use significantly less energy, though.
XLM price chart for 09/04/2021 on Bitfinex | Source: XLM/USD on TradingView.com
Key Characteristics Of The Stellar Blockchain
Almost all of the Stellar validators are corporate entities of some sort. Or are maintained by the Stellar Development Foundation. However, “anyone can install the Stellar software and join the consensus process.”
Each Stellar Lumen account must have a minimum of XLM in them. This minimum balance protects the network from spam accounts.
The Stellar Lumen’s mission is to pay for gas to conduct operations inside the Stellar ecosystem.
The Stellar ecosystem was not designed for direct payments. The idea is to provide a platform to serve as an intermediary in currency exchange.
The system “doesn’t privilege any particular currency.”
The code is open source and auditable by anyone.
“The Foundation helps maintain Stellar’s codebase, supports the technical and business communities around Stellar,” great! “And is a speaking partner to regulators and institutions,” ow.
Stellar recently signeda partnership with “crypto-asset risk management solutions” firm Elliptic. That means, “Elliptic’s monitoring, compliance, and analysis software now incorporates support for XLM, the native asset of Stellar.” Ow.
With the recent protocol 13 update, Stellar allows “fine-grained control of asset authorization.” This means the issuer of an asset can deauthorize accounts and don’t let them use the asset. This means, more control and permissions.
The Lumens had an inflation rate of 1% per year. In September 2019, Stellar removed inflation of Lumens. Also, the Stellar Development Foundation burned 55B of their Lumens.
So, Is Stellar a Ripple Fork?
Inits FAQ, Stellar goes back to its origins:
“The old Stellar network launched in July 2014. The node software (stellard) was a modified fork of the Ripple node software (rippled). The ledger was completely new and contained no history from Ripple’s network.”
Related Reading | Stellar To Introduce AMM Functionality, What This Means For Its Ecosystem
So, the software was originally based on Ripple’s, but the ledger was brand new. Nevertheless, in 2015, when they released the Stellar Consensus Protocol, they re-wrote the software from scratch. From that point onwards, Stellar doesn’t share any code with Ripple.
Featured Image by Nicole Avagliano on Unsplash - Charts by TradingView
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
The Stellar Development Foundation reportedly wants to acquire payments giant MoneyGram.
Citing people familiar with the matter, Bloombergreportsthat the non-profit organization behind the blockchain payment platform Stellar Lumens (XLM) is working with Boston-based private equity firm Advent International on the potential acquisition.
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The two firms have already contacted MoneyGram, but a decision has not yet been made.
Several companies have been eyeing a takeover of MoneyGram amid increased demand for online payments.
In 2017, Alibaba-owned electronic payments company Ant Group agreed to buy MoneyGram for $1.2 billion.
The deal stalled after failing to secure approval from the Committee on Foreign Investment in the United States.
Last year, fellow money transfer company Western Union offered to buy MoneyGram.
San Francisco-based payments firm Ripple also purchased a $30 million stake in the remittance giant in 2019, but the two firms announced in March that they are ending the partnership agreement.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Stellar’s XLM token rallied 14% following rumors that the Stellar Development Foundation has expressed interest in acquiring remittance provider MoneyGram International Inc.
XLM Rallies on MoneyGram Acquisition News
Stellar Lumens looks to have broken out of its downward trend.
The project’s native token, Stellar Lumens (XLM), has risen 14% in the last 24 hours. The asset’s jump may be due to bullish news surrounding the Stellar Development Foundation. On Wednesday, anonymous sources told Bloomberg that the group behind Stellar had expressed preliminary takeover interest in MoneyGram International Inc.
The Stellar Development Foundation is part of the Stellar Network, the non-profit organization behind the Stellar Lumens token. The organization’s goal is to facilitate fast, low-cost cross-border payments and remittances using XLM. Stellar is reportedly working with private equity firm Advent International on the acquisition. However, no final decision has been reached yet.
XLM suffered more than most other leading crypto tokens during the recent market downturn, shedding 74% of its value since its May high of $0.78. Despite the decline, the token is still up more than 160% since the start of the current bull market.
Source: CoinGecko
The Stellar takeover rumor is not MoneyGram’s first involvement with cryptocurrencies. In 2019, the firm partnered with Stellar competitor Ripple to provide international payment services using Ripple’s native token XRP. However, due to Ripple’s ongoing regulatory troubles with the SEC, MoneyGram officially ended its partnership with the company earlier this year.
Disclaimer: At the time of writing, the author of this feature owned BTC, ETH and less than $25 of XLM.
This news was brought to you by Phemex, our preferred Derivatives Partner.
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The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
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Stellar Development Foundation (SDF) CEO, Denelle Dixon, celebrated the result of a partnership with the payment infrastructure Wyre. This company has released a new Savings API for FinTechs to have access to a yield earning and savings product.
So exciting to see Wyre offer this functionality to the Stellar network. Congrats to the @sendwyre team on this launch! https://t.co/OV6TnOqbJI
— Denelle Dixon (@DenelleDixon) June 3, 2021
Based on the Stellar Network and its version of the stablecoin USD Coin (USDC), created by the CENTRE consortium. The API provides an annual yield much higher than the one offered by most traditional bank accounts backed by the U.S. dollar.
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This average has been estimated at an 0.06%, according to data provided by the SDF. With the Wyre Savings API, institutional and corporate clients receive more yield for their capital, can access tools for treasure management and can power earnings products for their clients.
Stellar Supports Growth Of Blockchain-Based Savings And Payment Features
The API has been designed to be an easy on-ramp to those Stellar-based assets, such as stablecoin USDC, and provided a “seamless” Savings API, according to an official post published by the SDF. Ioannis Giannaros, Wyre CEO, said the following on the cooperation:
With this Savings API, we’re giving FinTechs faster access to deposits and the confidence of doing business with a licensed money transmitter. This is a huge win for early stage FinTechs looking to quickly expand the functionality available to their users– particularly those seeking to accept funds and offer stable currency savings with earning capability in the developing world.
Giannaros said to be excited about this launch and the possibility for their clients to leverage its savings functionality with yield payouts.
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The Stellar Development Foundation and Wyre have been working together for quite some time. At the beginning of 2021, the SDF’s Enterprise Fund made a $5 million investment in Wyre.
The organization believes that this new API, in combination with the cost-efficient Stellar-based rail for financial services, will power a new set of products, such as the one launched by Wyre.
The Wyre Savings account will make monthly payments of its earnings. This can be compound in value, the SDF clarified, and feeless to access the on-ramp fiat value. SDF’s CEO added:
As a Stellar anchor, Wyre’s industry-leading payment APIs — including its savings functionality — provide simple on- and off-ramps to Stellar USDC and high-value offerings to partners in developing countries. By making it easy for FinTechs to accept funds and offer their users a way to earn on savings, Wyre is simplifying and enriching development on Stellar and helping to further strengthen the network as a whole.
Stellar’s partner has operations in over 50 countries and process over $5 billion ins transfers executed since 2013. In the U.S., Wyre has a licensed to operate as a money transmitter in 27 states. One of the first companies to use their Savings API is the FinTech Airtm, a company with a great presence in Latin America.
Users in this region will be able to save money and accrue earnings with the Stellar USDC. Also, it will give many unbank users the option of keeping their savings in U.S. dollars. Josh Kliot, Head of Product and Co-Founder at Airtm said:
Using Wyre’s Savings API and Stellar USDC to provide our Latin American clients the ability to accrue earnings has been a tailwind for incentivizing their funds to remain as dollars instead of withdrawing to devaluing local currency.
XLM trades at $0.41 with moderate losses across the board.
XLM on a downtrend in the daily chart. Source: XLMUSDT Tradingview
Bitcoin (BTC) has been struggling to rise above the $50,000 mark, which could have resulted in traders dumping their Bitcoin positions to invest in altcoins. Glassnode data suggests that whale addresses owning more than 1,000 BTC have reduced from about 2,500 in February to 2,100.
If large investors continue to sell, Bitcoin could witness a sharp correction until institutional investors step in and buy at lower levels. While MicroStrategy announced the purchase of 271 Bitcoin on May 13, other existing institutional investors appear to be adopting a wait and watch approach.
Crypto market data daily view. Source:Coin360
In an interview with Financial NewsSquare, Square chief financial officer Amrita Ahuja said, at this point, the firm does not have any plans to add Bitcoin to its existing haul of roughly 8,027 Bitcoin purchased in October 2020 and February of this year.
If other institutions also stay away from buying at current levels, Bitcoin’s price is likely to slide further. However, Fundstrat Global Advisors managing partner Tom Lee believes Bitcoin’s rally still has legs. Lee has increased his year-end Bitcoin target from $100,000 to $125,000.
With action becoming coin specific, let’s look at the top-5 cryptocurrencies that may lead the charge in the next few days.
BTC/USDT
The bulls again purchased the dip to the neckline of the head and shoulders pattern today but the long wick on the candlestick suggests profit-booking at higher levels. Bitcoin’s sentiment seems to have changed from buy on dips to sell on rallies.
BTC/USDT daily chart. Source:TradingView
If the bears sink and sustain the price below the neckline, the H&S pattern will complete. This setup has a target objective at $31,653.73. The downsloping 20-day exponential moving average ($53,297) and the relative strength index (RSI) below 36 indicate the bears are in control.
However, the bulls are unlikely to give up easily. They will try to stall the decline in the $43,000 to $40,000 support zone but if they fail, the decline could be sharp.
Contrary to this assumption, if the price turns up from the current level and rises above $51,550, the BTC/USDT pair may rally to the 20-day EMA. A breakout and close above the $60,000 resistance will suggest the bulls are back in the game.
BTC/USDT 4-hour chart. Source:TradingView
The rebound from $46,435.02 fizzled out at the 20-EMA. This suggests the sentiment is negative and traders are selling on rallies to the 20-EMA. If the bears sink the price below the neckline, the selling could intensify.
However, if the bulls again defend the neckline, the pair may attempt to rise above the 20-EMA. If that happens, the rally could extend to $51,538.22 where the bulls are likely to encounter stiff resistance.
If the price turns down from this resistance, the pair may consolidate between $46,000 and $51,500 for a few days.
XRP/USDT
XRP is currently trading inside a symmetrical triangle, which usually acts as a continuation pattern. If the bulls can drive the price above the resistance line of the triangle, the altcoin could retest the 52-week high at $1.96.
XRP/USDT daily chart. Source:TradingView
A breakout and close above $1.96 could start the next leg of the uptrend that may reach $2.68. The RSI has risen into the positive territory but the 20-day EMA ($1.43) is yet to turn up, which suggests that bears are likely to defend the resistance line aggressively.
If the price turns down from the resistance line, the XRP/USDT pair could extend its stay inside the range for a few more days. The pair could turn negative if the bears sink and sustain the price below the triangle. Such a move may pull the price down to $0.88.
XRP/USDT 4-hour chart. Source:TradingView
The price has dipped to the moving averages on the 4-hour chart. If the pair rebounds off the current levels with strength, it will suggest buying on dips. The bulls will then try to push the price above the triangle.
Alternatively, if the bears sink and sustain the price below the moving averages, the pair could drop to $1.35 and then to the support line of the triangle. A break below this support could signal advantage to the bears.
DOT/USDT
Polkadot (DOT) broke out and closed above the overhead resistance at $44 on May 14. The bulls continued the momentum and pushed the price to a new all-time high at $49.78 on May 15 but could not sustain the higher levels. Profit-booking has pulled the price back below the breakout level at $44.
DOT/USDT daily chart. Source:TradingView
If the bulls do not give up much ground from the current levels, it will suggest buying on dips. The DOT/USDT pair could then make one more attempt to rise above the psychological level at $50.
If that happens, the pair could start the next leg of the uptrend that may reach $63.68. The marginally upsloping 20-day EMA ($39.54) and the RSI in the positive territory suggest the path of least resistance is to the upside.
Contrary to this assumption, if the price sustains below $44, the pair could drop to the moving averages. A break below this support could pull the price down to $32.50.
DOT/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the bears pulled the price below the 20-EMA but the bulls are attempting to reclaim the support. The buyers will have to push the price above $47 to regain the advantage. If they succeed, a retest of $50 is likely.
On the other hand, if the price fails to climb above the 20-EMA, it will suggest a lack of buying support. That could pull the price down to the 50-simple moving average. The flattening 20-EMA and the RSI near 50 suggest a balance between supply and demand.
XLM/USDT
Stellar Lumens (XLM) is attempting to start a new uptrend. The bulls purchased the dip to the 20-day EMA ($0.61) on May 13 and pushed the price to a new 52-week high at $0.79 today. However, the long wick on the day’s candlestick indicates profit-booking at higher levels.
XLM/USDT daily chart. Source:TradingView
If buyers can sustain the price above $0.73, the XLM/USDT pair could rally to $0.85 and then to $1. The upsloping moving averages and the RSI above 63 indicate that bulls have the upper hand.
Contrary to this assumption, if the price sustains below $0.73, the pair could drop to the 20-day EMA. A strong rebound off this support will suggest the sentiment remains positive. The bulls will then make one more attempt to resume the uptrend.
This positive view will invalidate if the price breaks below the 20-day EMA. Such a move will suggest that traders are closing their positions in a hurry and not buying the dips. That could result in a drop to the 50-day SMA ($0.53).
XLM/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the formation of an inverse head and shoulders pattern. This bullish setup has a target objective at $0.90. The upsloping 20-EMA and the RSI in the positive territory suggest that bulls are in command.
During strong uptrends, corrections are likely to be shallow. Therefore, the current dip may find support at $0.72. A strong bounce off this level could increase the possibility of the resumption of the uptrend.
This bullish view will invalidate if the price dips and closes below the neckline. Such a move could trap the bulls, resulting in long liquidation. The pair may then decline to $0.55.
SOL/USDT
Solana (SOL) had been range-bound between $40 and $49.99 for the past few days. A tight consolidation near the high is a positive sign as it shows that traders are not booking profits in a hurry.
SOL/USDT daily chart. Source:TradingView
The 20-day EMA ($42.86) is sloping up and the RSI has risen above 65, indicating the path of least resistance is to the upside.
If the bulls can sustain the price above the psychological level at $50, the SOL/USDT pair may resume its uptrend. The next target objective on the upside is $60 and then $69.
On the contrary, if the price fails to sustain above $50, the pair may re-enter the range and extend its consolidation for a few more days. This positive view will invalidate if the pair breaks below $40.
SOL/USDT 4-hour chart. Source:TradingView
The 4-hour chart shows the bulls pushed the price to a new all-time high at $52.60 today but the long wick on the candlestick indicates profit-booking at higher levels. The price has dipped back below $50 but it may find strong support at $46.
A strong rebound off this level will suggest that traders are buying on dips. The bulls will then again try to resume the uptrend. The rising 20-EMA and the RSI near the overbought zone suggest advantage to the bulls.
Contrary to this assumption, if the bears sink the price below $46, the pair may drop to the 20-EMA. Such a move will suggest aggressive selling above $50 and that could keep the pair range-bound for a few more days.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
A Swiss fintech company is rolling out the first crypto exchange-traded products (ETPs) for Cardano (ADA) and Stellar Lumens (XLM).
21Shares AG is listing Stellar XLM ETP (AXLM) and Cardano ADA ETP (AADA) on the Swiss stock exchange (SIX Exchange) on April 26th with a base fee of 2.5% per year. It is also adding the two investment products to the Stuttgart and Dusseldorf multilateral trading facilities (MTFs).
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The firmsaysit is expanding its roster of crypto exchange-traded products amid rising interest in Cardano and Stellar Lumens. 21Shares says demand for its crypto ETPs soared by 200% since Q1 2021 as institutional investors allocate funds to institutional-grade and open-ended ETPs, driving the increase in new inflows.
ETPs track underlying securities and other financial instruments. Their share price is also derived from these assets. AXLM and AADA replicate the performance of Stellar Lumens and Cardano, respectively.
“Both AXLM and AADA ETPs will allow clients to diversify and gain exposure to cross-border transitions between any pair of currencies whilst Cardano will help running smart contracts using proof of stakes on a level previously not possible executing using your bank or broker. The ETP structure is 100% physically collateralised, segregated and replicates 1:1 the tracking of both crypto assets.”
Each unit of AXLM will be backed by approximately 40 XLM, and AADA by 16 ADA at launch. Coinbase will custody the firm’s Stellar Lumens collateral, while Kingdom Trust will custody the ADA collateral.
Stellar Lumens aims to provide a frictionless and low fee method of transferring funds and holds around a $9 billion market cap at time of writing. Cardano is a blockchain network rivaling Ethereum and holds a roughly $35 billion market cap.
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