Stellar Lumens recovery stalls but more gains can’t be ruled out

As the Meridian Conference continues, the Stellar Lumens token has drifted upward, reaching its highest level since October 1.

Stellar (XLM), one of the largest cryptocurrencies, rose to $0.096, increasing its market value to over $2.8 billion. The main catalyst for the token’s rise was the announcement of a new partnership between the Stellar Foundation and fintech giant Mastercard, valued at over $474 billion.

This partnership will enable Mastercard to integrate its Crypto Credential solution into the Stellar network. The solution, which helps verify interactions between consumers and businesses using blockchain, will be deployed on the Stellar network.

Mastercard became Stellar’s second largest partner after MoneyGram. Stellar’s partnership with MoneyGram allows users to send and receive USDC stablecoins at thousands of retail locations worldwide.

Stellar is one of the best blockchains on the USDC network. According to Circle’s website, over $176 million in USDC is circulating on the network.

Stellar has also partnered with Franklin Templeton, an asset manager with over $1.5 trillion in assets under management. Through this partnership, the company launched the Franklin OnChain US Government Monetary Fund, which has amassed over $435 million in assets.

Stellar token also rose after developers partnered with Dune Analytics, one of the largest data networks in the crypto industry. Data on the network shows that the Stellar network has completed over 4.12 billion transactions, while the number of users in the ecosystem has reached over 26 million.

But the key challenge for Stellar holders is the potential for further dilution in the coming years. XLM has a total circulating supply of approximately 30 billion tokens, compared to a maximum supply limit of 50 billion.

Stellar lumens reach resistance Stellar price chart | Source: TradingView

The Stellar XLM token has gradually risen after falling to $0.0883 on October 3. The retracement faced significant resistance at the 100-day moving average and the 23.6% Fibonacci retracement level at $0.096.

On the positive side, the Relative Strength Index has crossed the neutral level of 50, indicating some momentum. The token has also formed an inverse head-and-shoulders pattern, which is a popular bullish indicator.

Therefore, Stellar’s gains will be confirmed if it breaks above the psychological level of $0.10, which coincides with the descending trend line connecting the highest volatility since April.