Stellar (XLM) is one of the oldest cryptocurrencies around and today trades with a total market cap of over $11 billion, with 24 trading volume exceeding $2 billion, ranking the cryptocurrency in 13th place at the time of writing.
In this article, let`s take a closer look at Stellar price history, technical analysis, and Stellar price prediction for the upcoming years.
What is Stellar Lumens (XLM)?
Stellar blockchain technology was launched in 2014, making it one of the oldest cryptocurrencies that still has survived among the top 100 most significant coins. Jed McCaleb, the co-founder of Ripple and founder of MT. Gox, together with a lawyer, Joyce Kim, created this project as an alternative to Ripple.
With support from Stripe CEO Patrick Collison, the stellar network was launched with 100 billion stellar coins issued at first, after seed funding of $3 million was offered in return for 2 percent of the total XLM token supply from the blockchain startup. Almost a year later, in January 2015, stellar cryptocurrency already had more than 3 million users, with a market cap just below $15 million.
The digital currency utilizes Stellar consensus protocol, which is their own custom-made version of blockchain. To run the XLM cryptocurrency network, a total of 66 validator nodes operate across the globe, with three nodes run by the Stellar Development Foundation itself. This means less decentralization while gaining increased speed and reduction in fees for cross border payments.
Therefore, various payment processors frequently use the Stellar platform across the world, which has naturally led the Stellar lumens price to increase over time.
XLM price history and technical analysis
Stellar XLM market price has seen a substantial increase over the past months. Stellar spent most of 2018 and 2019 retracing from the previous all-time high of around $0.50. At the beginning of 2020, the market did eventually bottom out around the $0.03 mark, as seen on the price chart.
During 2020, Stellar price established both a significant swing higher high at $0.12 and a higher low at $0.07. In the middle of November, Stellar lumens price started rapidly pushing higher until the $0.23 mark was reached. This spike pushed stellar forecast price for next year much higher as the market had finally shown signs of strong recovery.
Over the following weeks, the XLM coin price action retraced to retest the $0.12 previous resistance as support. From there, the cryptocurrency market rallied over the following weeks until a new all-time high just above $.60 was set, reaching a market capitalization of almost $15 billion.
During February and March, the Stellar price saw another retracement together with Bitcoin price, which also saw a new all-time high set at the time. Support was eventually found around the $0.35-$375 area, where the market consolidated for some time.
At the end of March, the overall bullish trend resumed, and we saw the crypto market price almost retest the $0.60 all-time high. Currently, some rejection for further upside is seen as the Stellar XLM price has returned below $0.50. However, if the market can set another lower low above the $0.35 support, we should see the bullish trend continue over the following months.
XLM price prediction 2021
XLM price prediction continues to be bullish as we can see Stellar Lumens XLM price increase rapidly over the past months and the overall market. Let`s take a look at some of the most popular forecasts before you make your investment decision.
Wallet Investor Price Prediction
One of the most popular outlets, Wallet Investor, has set a 1-year Stellar forecast price at $0.654. As seen on the forecast chart, the expected trading range is very volatile. This, however, is outmatched by the potential price return.
Crypto Rating has a much more bearish Stellar price prediction, as they expect XLM to end the year around $0.46. Similarly, the Stellar forecast price is set at just $0.69 over the next 5 years.
AltPocket has set the Stellar price prediction target at $3 by the end of 2025. Considering the current market momentum, we should see this target reached. However, it is quite a bullish target overall.
The Economy Forecast Agency
The Economy Forecast Agency has set a moderate price target of $0.64. This Stellar XLM price prediction is in line with several other price forecasts and should be considered as one of the most realistic scenarios.
Crypto Ground has a very bearish forecast and investment advice for the XLM over the next year. They estimate that XLM/USD will trade at the $0.1054 mark, meaning a decrease of almost 80 percent by the end of 2021.
As always, TradingBeasts has one of the most detailed price predictions. They estimate a minimum price of $0.538, a maximum price of $0.79, and an average price of $0.633 by December of 2021.
XLM price prediction 2023
For 2023, Stellar Lumens price prediction is much bullish overall. This is likely due to fact that analysts expect investments from financial institutions over the next years as the popularity of the network grows.
Longforecast has a bullish outlook for the next two years. By May 2023, they predict an average price of $1.869, with the maximum price expected to reach $2.041, while the minimum price to not move below $1.639.
DigitalCoinPrice.com expects XLM to double in price in one year and reach above the $1 mark by the end of 2023. By 2028, Stellar price should reach the $2.17 mark.
For 2023, Trading Beast has set Stellar Lumens price prediction at a minimum price of $.556, a maximum price of $0.817, and an average price of $0.654.
Stellar Lumens price prediction 2025
Our Stellar price prediction for 2025 agrees with most analysts. Given that the current market cycle will likely end in 2022 or 2023, we expect another major retracement by the end of 2025. Therefore, much depend on what the overall cryptocurrency market price movement is like.
Overall, we expect Stellar price to reach above the $1.5 mark and, if the overall market cycle is bullish by 2025, we could see further gains to much higher targets.
Long-term XLM price prediction (beyond 2025)
Long-term XLM price prediction is a lot more bullish. As mentioned, by 2025, we should see another major market cycle turn bullish. Therefore, the market could see 10-20 gains beyond 2025, meaning a price target of $15-$25.
Is XLM a good investment?
The crypto exchange rate against fiat currency has increased rapidly over the past months. Therefore, we expect the bullish momentum to continue later this year, meaning that XLM should provide a good return on investment.
Final verdict on XLM
Overall, Stellar (XLM) is one of the oldest and best-known cryptocurrencies that still trades among the largest altcoins. It offers fast and low-cost transaction processing while sacrificing some of the decentralization. This means that the Stellar blockchain network has a very good potential as a go-to option for payment processors across the globe. Therefore, the Stellar coin should see a further increase in popularity and price over the next years.
Will XLM reach $1?
Given the current market bullish momentum, we only need XLM to double once again before the $1 mark is reached. This should be seen over the next months as the market currently retraces to build a base from which to move higher later this year. However, whether XLM/USD can remain above the $1 mark by the end of 2021 depends on the overall market condition.
Can XLM reach $100?
Stellar has seen rapid growth over the past years, with more than 100 times price increases seen before. Considering that the cryptocurrency currently trades around the $0.5 mark, we need a 200 times price increase to reach the $100 mark on a cryptocurrency exchange.
This would mean a total capitalization of more than $2 trillion, which exceeds the total cap of Bitcoin right now. Therefore, it is not very likely that we will reach the $100 over the next years.
Is XLM a good investment in 2021?
XLM has tripled in price since the start of 2021. The bullish momentum continues setting higher highs, and higher lows as the overall market popularity continues to grow. Therefore, we expect XLM to continue moving much higher this year and reach above the $1 mark as a minimum.
Is XLM worth buying?
XLM is one of the oldest and best-known cryptocurrencies that is expected to grow in price, size, overall popularity, and usability. Therefore, XLM should definitely be considered for inclusion in your portfolio.
How high could Stellar Lumens go?
There is no limit to how high Stellar Lumens price could go. Over the next years, we expect the market to reach above the $2 mark, with a $15-$20 target after 2025.
How to buy and sell XLM?
Since Stellar is one of the oldest and best-known digital assets, Stellar Lumens (XLM) can be purchased on practically every cryptocurrency exchange.