Stellar Lumens (XLM) Could Be On The Verge Of A Massive Breakout
Stellar Lumens (XLM) is currently at a very interesting point where it can be expected to record massive gains from here on out. The last time Stellar (XLM) had a similar price action; it made a 33x move! As the current market correction draws to an end, Stellar (XLM) looks all set to lead the altcoin rally from this point. The question is, “What will trigger this massive rally?”
There is an easy answer to that and there is a more complex answer to this. The easy and obvious explanation is that Stellar Lumens (XLM) is a lot like Ripple (XRP) in terms of price action. It has also had a similar correction. So, if the market were to recover from this point, Stellar (XLM) could be expected to recover most of its losses as well as mark new highs as part of the new altcoin rally. The trend line for Stellar (XLM) since the beginning of the year has held so far and points to green days in the near future.
The more sophisticated explanation as to why Stellar (XLM) could record such massive gains is the fact that Stellar (XLM) is Payment 2.0. It has one of the fastest transaction confirmation times of just a few seconds. Now, some might argue that this puts it close to Ripple (XRP), below Ripple (XRP) or above Ripple (XRP). However, the fact remains that Ripple (XRP) and Stellar (XLM) serve two distinct markets and completely different purposes. Stellar (XLM) is supposed to be a peer to peer payment platform to directly connect two or more parties. In other words, Stellar (XLM) empowers people to be their own bank and exchange value among themselves without the need for a middle man.
Speaking of middlemen, the purpose of Ripple (XRP) is to empower financial institutions that serve as intermediaries for online transactions and cross border payments. In other words, Ripple (XRP) wants to empower banks instead of the people. Perhaps this is why many in the crypto community see Stellar (XLM) as a better investment compared to Ripple (XRP), especially with the legal trouble Ripple (the company) currently is in as well as the future prospects and actual use of its XRP tokens.
When Bitcoin (BTC) first came into existence, many crypto enthusiasts thought it is going to replace fiat currency and serve as a universal mode of payment. It is still possible considering Bitcoin (BTC) is widely accepted, recognized and respected. However, the current market cap of Bitcoin (BTC) makes it unstable to serve as a mode of payment due to wide price fluctuations. Some day when Bitcoin (BTC) market cap is in trillions of dollars, maybe fluctuations will decrease. However, considering how Bitcoin (BTC) has succeeded in becoming more of a store of value (as digital gold) rather than a mode of payment, projects like Stellar (XLM) have a better shot at being used as mode of payment. Stellar (XLM) continues to trade in falling wedge on the XLM/BTC daily chart and is likely to break out in the days ahead.