Usman Salis
Stellar's recent price action has caught the attention of crypto traders as the payment-focused blockchain shows signs of renewed strength. After bouncing sharply from recent lows, XLM has entered a pivotal moment where the next move could determine whether bulls can sustain their momentum or if bears will regain control. With key technical levels in play and fundamental catalysts on the horizon, Stellar finds itself at a crossroads that could shape its trajectory in the coming weeks.
XLM Price Finds Its Footing After Recent Surge
Stellar has been holding its ground around $0.4416 after staging an impressive comeback from weeks of gradual decline. The rally kicked off from the $0.38 zone, backed by a substantial jump in trading activity that's now hitting $483.39 million daily volume.
Looking at the hourly charts, August 8 marked a turning point when buyers stepped in aggressively, smashing through key resistance barriers. Since that breakout, XLM has been consolidating in a tight range, which often signals that another leg up could be brewing.
What's Driving XLM Higher?
The recent price action isn't happening in a vacuum. Technically speaking, the push above $0.42 flipped several momentum indicators bullish, attracting fresh buying interest from both retail and institutional players.
On the fundamental side, the broader payments crypto sector has caught a tailwind from improved regulatory conditions. Ripple's recent SEC settlement has lifted the entire space, with investors showing renewed appetite for utility-focused tokens like Stellar. Adding fuel to the fire is Stellar's upcoming Protocol 23 upgrade, which promises to make smart contracts faster and cheaper – exactly what institutional adoption needs.
Critical Levels That Matter for XLM Price
All eyes are on $0.50 right now. If bulls can punch through that ceiling decisively, we could see XLM make a run toward $0.60, with $1.00 becoming realistic in a longer timeframe. But if the momentum fades, there's solid support waiting at $0.42, with an even stronger safety net around $0.40.
The setup looks promising with network improvements coming and sentiment still leaning bullish. However, crypto markets remain unpredictable, and broader economic headwinds could easily derail any rally plans.
Usman Salis
