Usman Salis
Stellar (XLM) is back in the spotlight as bullish momentum builds and traders eye fresh targets. The recent rally has reignited enthusiasm for the project, with the chart showing clear technical milestones ahead. Combined with growing interest in blockchain-based payment solutions, XLM's trajectory looks increasingly promising.
XLM Rides the Bullish Wave
Stellar has entered a decisive bullish phase after bouncing strongly from its mid-2025 lows. The surge comes alongside renewed optimism around blockchain adoption and institutional interest in digital payment solutions. Market sentiment got a boost when trader Chad Pumpiano highlighted the upside potential with mapped-out technical targets.
The weekly XLM/USD chart tells a compelling story of bullish recovery. After months of sideways movement and gradual declines, XLM broke out sharply, pushing prices from below $0.30 to test higher resistance levels. The immediate support now sits at $0.3885 following the breakout, and holding this level is crucial for maintaining the bullish momentum.
Looking at the targets ahead:
- Target 1: $0.4149 has already been tested, serving as a near-term checkpoint
- Target 2: $0.4502 marks the next major resistance where consolidation might occur
- Target 3: $0.4942 represents the extended bullish goal, aligning with previous chart peaks
This setup shows a classic bullish continuation pattern with higher highs and higher lows forming on the weekly timeframe.
What's Behind the Momentum?
Several factors are likely driving Stellar's breakout. The project continues expanding its role in cross-border payments and digital asset issuance, fitting perfectly with broader financial innovation trends. There's also a market rotation happening as investors diversify within altcoins, with XLM benefiting from flows seeking undervalued projects. The technical breakout above historical resistance has drawn in momentum traders, adding more fuel to the rally.
These elements suggest XLM's recovery isn't just a technical bounce but has solid fundamental backing too.
Usman Salis
