- Stellar Lumens price has been in a strong bearish trend in the past few months.
- Binance stopped support for USD Coin, the second-biggest stablecoin.
Stellar Lumens price has struggled in the past few months as investors wait for a catalyst. The XLM token was trading at $0.1065 on Tuesday, where it has been in the past few days. This price is about 86% below its all-time high, giving it a market cap of over $2.7 billion.
Binance stops supporting USDC
Stellar is a leading blockchain project that was created by a co-creator of Ripple Labs, one of the biggest companies in the industry. Like Ripple, Stellar hopes to simplify how people move money internationally. It works with companies like MoneyGram to help them simplify their remittance business.
One of its products is known as MoneyGram Access. It allows people to send and withdraw stablecoins internationally through MoneyGram agents. This is an important development since MoneyGram is one of the biggest companies in the industry.
One of the biggest stories this week is the decision by Binance to stop supporting USD Coin, Pax Dollar, and True USD. Instead, the company will convert customers deposits of these coins into Binance USD, its own cryptocurrencies.
This was a notable development since USDC was issued by Circle, a company that is backed by Fidelity and Blackrock. Circle then partnered with Stellar to launch the stablecoin, which has a market cap of over $50 billion. It is also a notable development since Binance is the biggest exchange in the world with over 90 million customers. A Circle spokesperson said:
“Based on market activity, it would seem much of this transition has already passed and while optimizing dollar liquidity on the world’s largest exchange may carry benefits, the paradigm does raise potential market conduct questions.”
XLM price has also dropped as on-chain metrics point to slow demand for the coin. According to Messari, the total number of active addresses has been in a strong downward trend in the past few months. This could be a sign that its demand is waning. The decision by Binance could lead to lower Stellar transactions in the future.
Learn more about how to buy Stellar.
Stellar Lumens price prediction
The daily chart shows that the XLM price has been in a strong bearish trend in the past few months. Recently, however, Stellar has moved sideways after it found strong support at $0.998. The coin remains slightly below the 25-day and 50-day moving averages while MACD has moved below the neutral level.
Therefore, there is a likelihood that the Stellar Lumens price will have a bearish breakout in the coming weeks. If this happens, the next key support level to watch will be at $0.9800.
