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Exploring Stellar (XLM)'s Latest Developments and Analysis
Investing 101
Jan 31, 2024

Exploring Stellar (XLM)'s Latest Developments and Analysis

Stellar (XLM) is a blockchain network that was established in 2014 as a fork of the Ripple protocol. It's primarily focused on facilitating payments and operates with its native token, XLM. The network distinguishes itself with features like fast transaction speeds and low fees. Recently, Stellar has been gearing up for a significant upgrade known as Protocol 20, aimed at introducing smart contract functionality similar to Ethereum's. This upgrade is expected to enhance Stellar's capabilities and potentially attract more developers to the platform.

XLM ChartXLM Returns

Latest Developments in Stellar (XLM)

The Stellar Development Foundation (SDF) had scheduled the Protocol 20 upgrade for January 30. However, a bug was discovered in the Stellar Core v20.1.0 software on January 25, prompting the SDF to reconsider this timeline. While initially deeming the bug to pose minimal risk, the SDF, after receiving feedback from the developer community, decided to delay the upgrade. This decision involved disarming validators to prevent the network from proceeding with the upgrade.

Stellar Unveils Revised Timeline for Protocol 20 Upgrade: New Vote Set for February 20

The Stellar Development Foundation (SDF) has unveiled a revised timeline for the Protocol 20 upgrade, following the postponement of the initial vote due to a non-critical bug. Set for February 20, this new schedule comes in response to community feedback and aims to ensure a smooth transition to Protocol 20. The delay, prompted by the bug's discovery, allowed stakeholders to address the issue effectively before proceeding with the crucial validator vote. With Protocol 20 poised to introduce Soroban smart contracts to the Stellar network, the upcoming milestones include the deployment of a new version of Stellar Core on February 2, followed by a stable release, testnet reset, and upgrade on February 6. On February 20, validators are expected to cast their votes for the upgrade, marking the rollout of Phase 0 of the new network iteration. Despite the announcement, the XLM market has shown a muted response, trading above $0.11 but below its year-to-date highs. As the countdown to February 20 begins, stakeholders eagerly anticipate the next phase of Stellar's evolution and its potential impact on the market.

Stellar on X 

Technical Analysis of Stellar (XLM)

From a technical perspective, Stellar (XLM) has been navigating through resistance and support levels against the US dollar. It has been struggling to surpass the $0.1160 resistance level while facing potential downside risks if support weakens around $0.1110. Despite attempts to breach the $0.1250 resistance, XLM experienced a decline, touching a low near $0.1070 before undergoing a minor recovery. Currently, investors are closely monitoring support levels at $0.1110 and $0.1088, with potential downside risks towards $0.1050. The recent rejection near the $0.14 resistance level has prompted a pullback towards the $0.12 support, indicating a swing entry opportunity within the uptrend. Momentum indicators like MACD and RSI suggest mixed signals, with MACD showing bullish tendencies while RSI hovers around 50, indicating neutrality. The weakening of MACD histogram bars suggests a potential loss of momentum. Nearest support zones are identified at $0.110 and $0.100, while resistance zones lie at $0.140 and $0.190. Overall, the technical outlook suggests an uptrend across short, medium, and long-term time horizons, albeit with mixed momentum signals.

Stellar Chart Analysis

Conclusion and Future Prospects

Stellar (XLM) continues to navigate through technical hurdles while preparing for the Protocol 20 upgrade. Despite encountering resistance levels, the network remains resilient, with ongoing efforts to enhance its capabilities through smart contract functionality. The delay in the upgrade underscores the community's commitment to ensuring a smooth and secure transition, prioritising the stability and reliability of the network. As developments unfold, investors and stakeholders are closely monitoring Stellar's progress, anticipating growth opportunities with the introduction of smart contracts through Protocol 20. With a focus on technical analysis and the latest developments, Stellar (XLM) is returning to its position as a significant player in the cryptocurrency space, poised for potential advancements and broader adoption in the future.

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