Saad Ullah
Stellar (XLM) demonstrates renewed bullish momentum as its price movement maintains a close relationship with global liquidity patterns. Current data indicates the ongoing rally may have additional upside potential if global liquidity expansion continues.
XLM and Global Liquidity Connection
Analysis from trader Bull Bear Spot reveals a compelling overlay between Stellar/USDT and global M2 money supply, showing a notable historical correlation where rising global liquidity typically corresponds with Stellar's price appreciation.
XLM currently trades at $0.386, experiencing a 4.59% daily decline. However, this short-term correction doesn't diminish the broader upward trajectory, which remains supported by steadily climbing global liquidity levels.
The technical picture shows XLM maintaining support above the $0.35 level, establishing a solid near-term foundation. Key resistance emerges around $0.50, where a successful breakout could propel the price toward $0.70. The continuing upward trend in M2 supply reinforces the bullish thesis for Stellar.
Bullish Factors for XLM
Several macro drivers contribute to Stellar's positive trajectory. Expanding global liquidity typically supports higher valuations across risk assets, with cryptocurrency markets often benefiting from increased money supply. Stellar's growing utility in cross-border payments and stablecoin settlement strengthens its fundamental value proposition.
Market participants increasingly rely on liquidity metrics as leading indicators for cryptocurrency rallies, positioning Stellar favorably within this analytical framework. The correlation between XLM and global liquidity provides traders with additional confidence in the asset's potential performance.
Should global M2 growth maintain its current pace, Stellar could extend its rally and potentially challenge the $1.00 level over the coming months. Nevertheless, traders should exercise caution, as liquidity-driven markets can experience sharp reversals if macroeconomic conditions shift toward tightening policies.
Saad Ullah
