Stellar’s native token, XLM, has posted a sharp 16% weekly gain, breaking out of a bullish flag formation on the daily chart and attracting renewed attention from traders and institutions alike.
The breakout comes as technical indicators signal room for further upside, with analysts setting short-term price targets in the $0.63–$0.64 range.
Technical Breakout Signals Higher Targets
The recent rally saw XLM’s MACD histogram flip positive at +0.0001397, while the Relative Strength Index (RSI) sits at 62.38 — still below the overbought threshold of 70.
The $0.47 level has emerged as a key pivot point; a sustained daily close above it could transform it from resistance into strong support. Fibonacci extensions now suggest potential moves toward $0.56–$0.68 if buying momentum holds.
Trading activity supports the bullish case, with 24-hour turnover hitting $517 million — a 10.5% increase from the previous day, indicating growing conviction among buyers.
Visa and Marketnode Deals Boost Real-World Adoption
Institutional interest is also fueling optimism. On August 11, 2025, Visa expanded its stablecoin settlement network to Stellar, paving the way for faster and cheaper cross-border transactions. Additionally, Marketnode — a joint venture between Singapore Exchange (SGX) and Standard Chartered — integrated Stellar for institutional asset tokenization across Asia-Pacific.
With transaction finality in just 3–5 seconds and fees as low as $0.00001, Stellar’s infrastructure is well-positioned for enterprise-grade payment solutions. The Visa partnership could also accelerate adoption of PayPal’s PYUSD stablecoin on Stellar, strengthening XLM’s role as a liquidity bridge in global settlements.
Derivatives Market Points to Possible Short Squeeze
In derivatives markets, XLM futures open interest climbed 6.05% over the past 24 hours, with short positions clustered near $0.47. Liquidation heatmaps indicate that a push above $0.48 could trigger $4.09 million in buy-side liquidations, potentially accelerating the rally.
However, failure to hold above $0.47 could see prices retreat toward support at $0.39–$0.41. Funding rates remain steady at +0.0245%, avoiding the excessive leverage seen in previous speculative surges.
Outlook
If XLM can maintain momentum and close the month above $0.55 — a level closely watched by analysts — the next phase of the rally could bring even higher targets into play.
With both technical and fundamental tailwinds aligning, Stellar’s recent move may just be the beginning of a broader upward trend.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/stellar-xlm-price-action-signals-potential-for-major-upside/