Stellar (XLM) is witnessing a surge in network activity, with 700% growth in smart contract deployments and over $5.4 billion in real-world asset (RWA) volume, signaling robust adoption in blockchain-based financial infrastructure. The implementation of Protocol 23 has boosted the network's capacity to 5,000 transactions per second (TPS), enhancing scalability for institutional use cases like remittance and global banking partnerships.
From a technical perspective, XLM has broken a five-year downtrend, suggesting a potential shift in long-term market dynamics and improving sentiment. Historically, November has been a strong month for XLM, averaging 58% gains, driven by rallies such as +470% in 2024 and +159% in 2020. However, the median return for November is -5.67%, indicating inconsistency in past performances.
Currently, XLM is trading near $0.30 after a volatile October that saw prices fall approximately 17%. Technical charts reveal a hidden bearish divergence in the Relative Strength Index (RSI), where price forms lower highs while RSI makes higher highs, hinting at weakening buyer momentum. Short-term money flow, measured by the Chaikin Money Flow (CMF), is slightly positive at +0.04, suggesting minor inflows, but the larger timeframe CMF remains negative at -0.10, reflecting caution among institutional investors.
Derivatives data from Bybit shows a significant imbalance with $7.9 million in short positions versus $4.3 million in longs, creating potential for a short squeeze if prices climb. The price is confined to a symmetrical triangle between $0.27 and $0.35, with a break below $0.27 possibly leading to $0.21 or lower, while a close above $0.37 could target $0.47 or higher. Despite strong fundamentals, the technical setup points to a fragile recovery in the short term.
BTC
SAND
USDT
USDC
TRX
ETH
IPO
OZ