XLM price rises 14% after Stellar announces Europe-Thailand remittance corridor

• Stellar’s blockchain will power a $17 billion remittance corridor between Europe and Thailand
• 600 million customers across Thailand and 27 European countries can avail the service
• Stellar’s native token XLM pumped 14% in response to the news

JAIPUR (Coinchapter.com) – XLM resumed its uptrend on Thursday after reports confirmed the launch of a Stellar-powered $17 billion remittance corridor between Europe and Thailand. The XLM/USD pair rallied 14% to touch an intraday high of $0.365 before retreating to $0.354.

The pair’s latest upside move followed an almost 11% dip from its previous local top at $0.353 achieved on Thursday. XLM’s current buying price sits near the multi-month resistance of $0.361, recorded on June 9.

A series of downward moves triggered by aggressive profit-takers kept upsides limited beyond the said price then. But the XLM/USD pair’s latest jump reversed the scenario.

Related: Stellar follow-up: XLM rallies 29% in Bollinger Band breakout; what’s next?

A $17 Billion Worth Remittance Corridor

The proposed $17 billion remittance corridor connecting Thailand and 27 European Union nations highlighted the Stellar community and XLM markets. As per the official announcement, Velo Labs, TEMPO Payments, and Bitazza Thailand joined hands to build the same.

Stellar’s public ledger will enable cross-border transactions on the global remittance system, which will leverage the Velo Protocol, Velo tokens, and Velo digital credits. TEMPO Payments and Bitazza are the financial institutions participating in the deal. Together the three firms intend to service nearly 600 million customers across the ASEAN and EU markets.

However, the partnership to “revolutionize international payments” took shape amid the Bank of Thailand’s (BOT) warning against using crypto assets for payments. The central bank cited money laundering, price volatility, and online theft as its concerns.

XLM Technical Setup

The XLM/USD exchange rate held firmly over the 50-day and 200-day MA waves while trading within an Ascending Channel setup. Bulls appeared exhausted at $0.36 as the pair entered the overbought territory coinciding with the RSI reading at 68.4. RSI below 50 favors bulls and above 50 bears.

Related: Stellar sinks to year’s strongest support level—a wild XLM rebound ahead?

Sellers reversed breakout efforts beyond the Channel by placing sell bids and pushing prices down to $0.355. Market conditions look skewed towards bears, with XLM eyeing a drop towards $0.33 (38.2% Fibonacci retracement level). A selloff scenario below the said price is slim but could take shape.

However, if bullish pressure persists, the next target for XLM/USD spot rates lies at $0.42.