Sensational crypto analysis and commentary television show Coin Bureau aired a price prediction for Stellar Development Foundation (SDF) proprietary crypto token, the $XLM.
The prediction features the show’s perceived price action that the token will Undertale in the coming year of 2022.
Coin Bureau’s Analysis
In the show’s latest weekly episode, show host “Guy” presented to YouTube subscribers that the XLM is a possible winner in 2022 despite the token’s lackluster performance this year compared to other cryptocurrencies.
The episode featured Guy’s in-depth analysis. He revealed that the Stellar Development Foundation’s massive token sales significantly contributed to its overall sell pressure and its resulting overall sell trend.
The XRM developer has not measured up to its counterparts in revenue generation over the last year. Since its emergence, it has only raised about $3 million, which is a considerable disadvantage for the foundation compared to industry counterparts’ deep pockets and the revenue they raised for capital.
In a bid to develop and grow relevantly in the harsh competitive environment, the foundation could only sell its XRM tokens in large quantities for steady revenue infusion.
The foundation has offloaded over 3 billion XLM tokens to the market in 2021 alone. It has been transparent in its dealings and upfront with community members about its aims and the means it will utilize to realize said aims.
Coin Bureau’s Guy in the YouTube upload heaped praises on the SDF’s team for their absolute transparency while citing the foundation’s mandate.
He primarily referenced the mandate’s last paragraph that stated the foundation’s desire to continue selling XLM tokens in the long run, at least for the next ten years, explaining that XRM token’s effectual sell pressure might not go on away in the meantime.
XLM Price Gain Despite Underperformance
SDF’s XLM’s mediocre year was not without its highlights. The crypto token has gained more than double its price value over 12 months. It has been a go-to crypto trading pair for investors looking to trade futures contracts and marginal staking due to its overall stability.
The token has established itself as one of the most stable altcoins in the outgoing year based on regular price movement. It maintained a relatively stable trend throughout the year, seldom reversing from predicted price actions.
Selling pressure influenced by the SDF steady dump of the token has helped cap the token’s growth effectively.
The Developing Team’s sell pressure can therefore be considered both an advantage and a disadvantage to the growth of the token.
A Possibility Of Sustained Growth In 2022
Increasing popularity amongst investors and price index increase in 2021 are indicators of a possible 2022 boom for XLM’s price value.
Guy highlighted XLM’s increased utility for derivatives activity rather than direct acquisition- investors buying, selling and HODLing led to the tokens’ overall lack of demand in 2021. The lack of demand and SDF’s selling domino effect is a significant barrier that the project will have to breach to enjoy profitable growth in the industry next year.
Guy further speculated that XLM’s perceived similarities with XRP constitute a significant deal-breaker for the project as investors seem to steer clear of the token due to the community’s misguided perception. The XRP has been tagged as non-registered security by the UD SEC.
Despite the dark future Guy has envisioned for SDF’s project, he concluded that should the team ingeniously circumvent these issues, the token will enjoy a major price growth come 2022.