Stellar (XLM) is showing signs of a potential price recovery, with analysts targeting a rebound toward the $0.34 resistance level. The token is currently trading around $0.26, having tested the key $0.23–$0.24 support zone, which has held as a stable demand area throughout the year. Technical indicators point to a critical juncture, with XLM attempting to break above a descending channel pattern.
Recent trading sessions have seen a 35% surge in volume to $211 million, signaling renewed market interest. The Relative Strength Index (RSI) sits at a neutral 33.84, with a move above 50 potentially confirming bullish momentum. A decisive close above the $0.30 psychological threshold and the $0.32 level is seen as crucial for validating a medium-term trend reversal from bearish to bullish.
Beyond chart analysis, ecosystem developments are bolstering the long-term case for XLM. Speculation is growing that PayPal's stablecoin, PYUSD, may expand to the Stellar network. With a market cap of $3.8 billion, PYUSD's potential integration is seen as a natural fit due to Stellar's focus on speed, efficiency, and low-cost settlement for cross-border payments and stablecoins.
Stellar's fundamentals are further supported by institutional validation. The network serves as the backbone for Franklin Templeton's OnChain U.S. Government Money Fund, which manages over $270 million in assets. Furthermore, the 2024 launch of Protocol 20 and the Soroban smart contract platform, built on Rust/WebAssembly, positions Stellar to attract developers for more complex financial applications.
