The XLM crypto price moved closer to $0.20 after gaining 1.45%, extending its recovery from an August low near $0.155.
Another potential source of liquidity for Stellar’s payment-centric network follows Tether’s USDT0 token launching on it earlier this week. Over the past few rallies the XLM price has struggled to break through its previous price records.
USDT0 expands Stellar’s stablecoin offering
On September 2, the Stellar Development Foundation announced the arrival of USDT0.
People and businesses are able to use Tether’s USDT liquidity through Stellar, using USDT0, and potential use cases include international payments, transferring funds between financial applications and company settlements.
This means that instead of creating separate pools of tokens for every network supported by the asset, there is one common supply supported by USDT.
The move is set to increase the choice of digital dollars on Stellar’s payments platform, joining other USD-backed and euro-backed stablecoins already available on the system like UDSC and PYUSD.
Users do not have to hold XLM to send out payments; the network’s token is mostly used to cover transaction charges and maintain accounts. However, stablecoin usage would increase activity and make XLM popular amongst its peers.
XLM price approaches a familiar barrier
XLM was swapping hands at $0.1903 at the time of this writing, having ranged between lows of $0.1854 during the trading session and climbed to $0.1964 at its highest. The total amount of trades of XLM has now totalled 87.09 million.
The price is now nearing $0.20 again, and this area stopped advances in July and again in the second half of August.
However, touching that level briefly may not be enough, since buyers will need to keep XLM above the level of $0.20 to suggest that a room for a potential rally is ahead.
In that scenario $0.21 will be looked at next, then $0.22; again an area in the past that has brought sellers out.
If rejected from these levels, it means XLM could fall back down to around the $0.18 mark. It recently saw support from these regions; a rejection, however, means that it could potentially move into the trading regions last seen in August, which lie near $0.16.
Buying interest has started to pick up, although it is still nowhere near the levels of the sharp rallies it printed earlier in the year. Although XLM is moving in the right direction, the recovery is holding back for its biggest push.
Final Summary
- XLM reached $0.1964 as buyers pushed the price towards the repeatedly tested $0.20 level.
- USDT0 has expanded Stellar’s stablecoin offering, although its effect on demand for XLM remains uncertain.