Stellar (XLM) is preparing for its largest and most complex protocol upgrade to date. Meanwhile, the altcoin price has fallen since its annual high in July. It is now approaching the long-term horizontal support level at $0.105. Analyst Valdrin Tahiri says XLM remains in limbo and plots its possible route.
Stellar is preparing for its biggest protocol upgrade
Blockchain-based payment network Stellar (XLM) is preparing for the “Protocol 20 Upgrade,” its largest and most complex protocol upgrade to date. This upgrade will provide support for Soroban smart contracts. Soroban’s smart contract support will be added to the altcoin project’s test-net on September 20 at 15:00 CET. Making a statement on this issue, Soroban announced this in an X post. Additionally, Soroban added that Futurenet will remain alive and unaffected for now.
Prepare for #Stellar’s Protocol 20 upgrade! It’s the biggest one yet, introducing Soroban smart contracts.
Things to know:
1. Testnet upgrade on Sep 20, 1500 UTC
2. Update Stellar-related software
3. Stay updated in the (#protocol-20) discord channel
4. Go here for more info…— Stellar (@StellarOrg) September 18, 2023
Stellar test-net will also be upgraded on Wednesday, September 20 at 18:00 CET. Thus, it will be possible for Stellar Core and Horizon to release candidate versions. Meanwhile, the Protocol 20 upgrade will introduce new network settings controlled by validators. So the initial upgrade vote is likely to be followed by a series of additional votes to adjust the settings.
Altcoin project is progressing rapidly in terms of innovations
Stellar published a blog post detailing the upgrade. He noted here that main-net validators are likely to vote on an upgrade six weeks after stable versions are released. Therefore, the date for the public network upgrade vote is TBD, meaning “to be determined.” However, the altcoin project promises to provide an update on this issue as time goes by. It also promises to provide immediate timelines for votes and update with new dates as new information becomes available or new versions are released.
As you follow from Kriptokoin.com, Stellar attracted attention last week after releasing its highly anticipated teaser, a fancy commercial starring British actor Idris Elba. A new look for the altcoin project also came with the redesign of the website. On September 14, Stellar also introduced “Decentralife,” a series exploring true stories of individuals creating real-world change through Blockchain technology.
XLM price continues its descent towards support
Technical analysis on the weekly time frame shows that the XLM price has fallen since its annual high of $0.195 in July 2023. The downward move was sharp and formed a long upper wick (red icon). This led to a low of $0.105 in August, which confirmed the $0.105 horizontal area as support. Interestingly, this created a long lower wick (green symbol), which is considered a sign of buying pressure.
The price then rebounded. However, it failed to sustain its rise and is trading only 10% above the horizontal support area at $0.105. Despite the decline, RSI data is still on the rise. The indicator rose above 50 in June (green circle). Additionally, it is currently confirming the line as support (green icon). If the price continues its previous upward move, the next resistance will be at $0.235, approximately 100% above the current price. It is worth noting that a court approved the FTX liquidation plan for various crypto assets. Meanwhile, the bankrupt crypto exchange has not announced that it will liquidate any XLM tokens.
XLM Weekly Chart. Source: TradingViewXLM price prediction: Altcoin is in limbo for now!
Daily time frame analysis provides mixed data due to both price action and RSI. First, XLM price broke out of a descending resistance line on September 4. Expectations were that this bullish sign would lead to a significant price increase. However, this was not the case. XLM price failed to reclaim the $0.130 horizontal area. Instead it was rejected and confirmed as resistance (red icon). Failure to sustain the breakout is considered a bearish sign and puts its validity at risk. RSI also gives an uncertain reading. The indicator is right at the 50 line, indicating an uncertain trend.
XLM Daily Chart. Source: TradingViewAs a result, the XLM price prediction is still unclear. A rise towards the $0.130 resistance area would imply a 10% upside move, while a decline towards the $0.110 area would result in a 9% decline.
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