Stellar Soars on MoneyGram Partnership News
Stellar Foundation has teamed up with MoneyGram.
Key Takeaways
- The Stellar Foundation has partnered with MoneyGram to enable near-real-time settlements.
- XLM gained over 19% in market value following the announcement.
- Stellar may now be bound for a brief correction before possibly higher highs.
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The Stellar Foundation is making significant strides to grow the utility of the XLM ledger. A new partnership with MoneyGram aims to enable customers to convert digital assets into cash seamlessly.
MoneyGram Leverages the Stellar Network
MoneyGram has announced that it has teamed up with the Stellar Development Foundation and Circle to create a bridge between digital assets and sovereign currencies. The cross-border peer-to-peer payments and money transfer company aims to enable near-real-time settlements using blockchain technology and stablecoins.
Customers will have the ability to convert USDC to cash and vice versa, leveraging the low fees and speed of the Stellar network. The integration is intended to boost the adoption of blockchain technology while increasing the utility and liquidity of cryptocurrencies, according to Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation. She said:
“This partnership is a shining example of how blockchain technology and stablecoins bring new opportunities to global customers and enhance the existing financial system… giving [customers] access to fast and affordable digital asset services that may have previously been out of reach.”
Although the new services are scheduled to go live in select markets with further international expansion in 2022, market participants have reacted positively to the news. XLM has surged by 19% in the past few hours to reach a high of $0.37.
XLM Looks For Liquidity Before Advancing Further
XLM’s price action appears to have been contained within an ascending parallel channel over the past two weeks.
Whenever Stellar rises to this technical formation’s upper boundary, it tends to be rejected and retraces to the pattern’s lower edge. From this point, it tends to rebound, which is consistent with the characteristics of a parallel channel.
The cross-border remittance tokens recently reached the channel’s upper trendline, indicating that a retracement to the middle or lower trendline may be underway. These crucial areas of support sit at $0.35 and $0.33 respectively.
It is worth noting that further buying pressure could invalidate the short-term pessimistic outlook and lead to more gains. A break of the $0.38 resistance level could result in a bullish impulse toward $0.41 or even $0.43.
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