Stellar (XLM) followed the general market sentiment and trended lower over the past 24 hours. Bitcoin, Ethereum and other larger cryptocurrencies have been rejected at critical resistance levels and now look set to push the sector towards support.
At the same time, the Stellar Development Foundation (SDF) released its Q2, 2022, report celebrating “steady progress on its 2022 roadmap”. The nonprofit organization says the network has seen improvements in scalability, demand and participation.
One of the key milestones this quarter is the Jump Cannon project, which is expected to provide Stellar with a “robust runtime environment for smart contracts.” In January, this network announced the implementation of smart contracts with a tentative launch date set for December 2022.
The announcement was made by Tomer Weller, vice president of technology strategy at SDF, who oversaw the implementation of these features with the WebAssembly Runtime Environment (WASM). The SDF says WASM will provide its smart contracts with a secure, scalable, and easily accessible environment.
In addition, the SDF claimed that the network has benefited from the introduction of Protocol 19. This update facilitates the “creation of payment channels” or second layer payment solutions that support “cases of broadband usage,” according to the report.
The Stellar network also expanded its ecosystem in Q2 2022, with the rollout of MoneyGram Access. Global crypto fiat on/off ramp financial service that allows MoneyGram customers to send and receive funds without the high cost of using legacy payment rails.
The SDF has consolidated major partnerships with international exchange platforms, such as with CoinMe and Mercado Bitcoin. The organization also announced that Novatti will be rolling out a digital version of the Australian dollar (AUD) on the Stellar network.
Stellar faces macroeconomic headwinds
Despite network updates, partnerships, and use cases, Stellar (XLM) is reacting to the macro environment. The milestones announced by the SDF are offset by a global economic environment of high inflation, rising interest rates and lower liquidity in global markets.
On short timeframes, XLM price is recording significant support below its current levels. Data from Material Indicators shows that there are approximately $1 million worth of tender orders waiting to potentially work as support if XLM price continues to decline.
Material indicators are registering an increase in buying pressure from retail investors. Unless large investors jump into the market with buy orders, this trend suggests a potential retest of the lower levels.
XLM’s price and the crypto market could see a surge higher if US public company earnings season contributes by posting positive results, the investment firm’s Macro director hinted at the possibility. Fidelity Jurrien Timmer.
Second quarter earnings are encouraging so far, but remember we have 9% inflation and earnings are generally viewed in nominal terms. So there is less than it seems here. Expected earnings growth for 2022 remains at +10%, but without the energy sector it is only +4.3%. pic.twitter.com/HLSIjWGoC
— Jurrien Timmer (@TimmerFidelity) July 26, 2022
SDF’s report hints at long-term appreciation for Stellar and its native token, but current macro conditions are unfavorable. If XLM and major cryptocurrencies can sustain their current levels beyond this week, it could be a potential sign of sustained bullish price action.