- Stellar lumens price has moved sideways in the past few weeks.
- The soroban mainnet launch will happen on January 30th.
- The XLM token has formed a triple-top pattern on the daily chart.
Stellar Lumens (XLM) price has moved sideways in the past few weeks as the crypto industry loses momentum. The XLM token price was trading at $0.1130 on Friday, 18% below its highest point this year.
Soroban launch ahead
Stellar is one of the biggest players in the blockchain industry. Started by a Ripple Labs co-founder, the network plays an important role in the blockchain and payment industries. The key product in the network is the USD Coin (USDC), the second-biggest stablecoin in the world with over $25 billion in assets.
Stellar powers some of these coins. According to Circle, the stablecoin’s creator, Stellar has about $60 million of these tokens. This view is supported by DeFi Llama, which places the figure at $60.8 million.
Stellar network seeks to expand its platform by introducing a blockchain network called Soroban. Soroban is a rust-based smart contracts platform with superior speeds and low transaction costs.
Soroban is a logical idea for Stellar because it will help to power its DeFi ecosystem. For one, it will help to marry the off-chain and on-chain payment industries through decentralized finance.
According to the developers, the soroban mainnet will be launched on January 30th. In a statement, these developers noted that the launch will be the most transformative upgrade to the Stellar ecosystem ever. For one, Stellar will introduce its own standard to compete with the likes of Ethereum’s ERC standard.
Soroban faces numerous challenges ahead. For example, there is the issue of competition, which has risen substantially in the past few months. Projects like Sui, Sei, Celestia, and Manta have all been launched recently. The other competitors in the industry are the likes of Arbitrum, Optimism, and Polygon.
Stellar lumens price forecast
Turning to the daily chart, we see that the XLM price found a strong resistance at $0.1382 between November and December. It formed a triple-top pattern in this level. XLM has now retreated and moved below the 50-day and 25-day Exponential Moving Averages (EMA). It is also hovering near the neckline of the triple-top pattern at $0.1130.
Therefore, the outlook for Stellar Lumens is bearish, with the next reference level to watch being at $0.10. This is both a good psychological point and also the lowest swing on October 12th.
