- Experts are pointing to technical signs suggesting that the price of Stellar’s native token, XLM, could see a significant increase soon.
- This potential rally is also supported by the continuous expansion and development of the Stellar network’s ecosystem, which is increasing investor confidence and XLM’s usefulness.
XLM is drawing renewed interest from investors and analysts. This attention is fueled by both technical signals on price charts and the significant progress the Stellar network has made in building its ecosystem.
Factors Driving Stellar’s Potential
According to the analysis shared by crypto expert Ali, the price chart for XLM is showing an ascending channel. This pattern is often seen as a sign of steady price gains. If the price stays within this channel and manages to break above a key level, it could trigger a larger buying trend.
Currently, XLM’s price is approaching a significant point of resistance at $0.2850. If buyers can push the price past this barrier, it could lead to a surge towards the $0.30 mark. Breaking past it would be viewed by some analysts as a strong bullish signal for XLM.
Beyond the technical charts, the growth of the Stellar ecosystem is also a major factor supporting a positive outlook for XLM. The Stellar Development Foundation has been actively working on several fronts to increase the network’s usefulness.
Key developments include significant steps in Decentralised Finance (DeFi), such as the launch of Soroban, Stellar’s smart contract platform. Smart contracts allow for more complex applications to be built on Stellar, offering features like faster processing, lower costs, and better security compared to some older platforms.
In terms of payments, Stellar has focused on making cross-border transactions easier. Integrations with services like MoneyGram Ramps allow users to convert physical cash to digital money on Stellar.
Collaborations, such as joining the Mastercard Crypto Credential ecosystem and Stripe announcing support for payouts on Stellar, are aiming to make crypto transactions more compliant and user-friendly for both consumers and businesses.
Regarding assets, Stellar is facilitating the tokenisation of real-world assets. For instance, Franklin Templeton’s Benji investment platform, which operates on Stellar, has seen significant growth in assets.
Listing stablecoins like GYEN and ZUSD on exchanges like Bitstamp and integrating with major players like Paxos and Taurus for asset issuance and custody are making it easier to bring traditional assets onto the Stellar network.
Adding USDC on the network through platforms like Yellow Card in Africa is also expanding stablecoin access globally.
Stellar’s progress in making finance more accessible, especially in emerging markets, adds to investor confidence. As blockchain technology becomes more integrated into daily financial activities, the positive developments on Stellar contribute to an optimistic view for XLM.
While broader market trends will still play a role, the combination of bullish technical patterns and the tangible expansion of the Stellar ecosystem suggests that XLM might be ready for a significant price move, with many watching to see if it can overcome resistance and reach the $0.26 target. XLM is currently trading at $0.2891, up 2.79% in the last 24 hours.