The XLM price jumped sharply on Thursday as investors reflect on the new partnership between Stellar Foundation and Moneygram. The Stellar price is trading at $0.3560, which is about 82% above the lowest level in July.
Stellar Foundation and MoneyGram partnership
In a statement on Wednesday, Stellar Foundation announced that it will partner with MoneyGram in a bid to boost its remittances business. The partnership will see MoneyGram integrate Stellar’s blockchain technology. It will be helped by Circle’s USD Coin. As such, Stellar wallet holders will have a physical place to convert their USDC Coins to cash and vice versa.
This is a notable deal for three main reasons. First, it appears like MoneyGram has given up on its collaboration with Ripple. The company suspended the partnership after the SEC launched a lawsuit against Ripple Labs and its executives.
Second, the partnership means that talks of Stellar Foundation acquiring MoneyGram have faded. Indeed, the market value of MoneyGram has fallen to more than $704 billion. The value had zoomed to more than $1 billion when the deal was announced. Therefore, there is a likelihood that the merger will not happen.
Third, the deal shows that mainstream companies are embracing the role of digital currencies in their operations. For one, MoneyGram is one of the biggest remittances companies in the world. Therefore, this success could draw more companies to the ecosystem.
XLM price prediction
The daily chart shows that the XLM price has zoomed by more than 40% in the past few days. The price is about 15% below the key resistance at $0.4296. The price is also slightly above the 61.8% Fibonacci retracement level. It has also moved above the 25-day and 50-day moving averages.
Therefore, a bullish breakout will only be confirmed if the price manages to move above the resistance at $0.4296. A move above this level will open the possibility of the coin rising to the next key resistance of $0.5, which is about 36% above the current level.