Stellar (XLM) Price Analysis: What's Next After 75% Surge?

Stellar (XLM) Price Surge

Stellar (XLM) recently experienced a significant price surge of 75% in July, reaching a peak of $0.51 before settling around $0.42 at the time of reporting. Despite a slight cooldown, the cryptocurrency remains above its 50-day and 200-day moving averages, indicating ongoing bullish momentum. Scopuly, a Stellar-focused platform, notes that the consolidation near $0.41 is a natural pause following a strong upward trend rather than a sign of weakness.

Technical Indicators and Trading Volume

Key technical indicators show the Relative Strength Index (RSI) at 54.2, suggesting that XLM is neither overbought nor oversold. The Moving Average Convergence Divergence (MACD) indicates mild short-term weakness but no significant bearish signals. With a trading volume of $28 million over the last 24 hours, there is sustained interest in the token.

Key Support and Resistance Levels

The $0.42 level has become a crucial area of focus for XLM. Maintaining support above this level could potentially lead to a target of $0.52. However, a break below $0.42 might signal a price drop towards $0.30, marking a significant pullback from its recent high in July.

Upcoming Protocol 23 Upgrade and Investor Sentiment

The upcoming Protocol 23 upgrade in August could have a significant impact on XLM's trajectory. This development aims to improve Stellar's network efficiency and real-world utility, potentially attracting more institutional attention. Stellar's existing partnerships with companies like PayPal and Franklin Templeton add to its credibility and long-term appeal, influencing investor sentiment. Despite a brief pause in the rally, the overall technical and fundamental outlook for XLM remains positive. Investors are closely monitoring key developments, such as the Protocol 23 upgrade and potential partnership announcements. If XLM continues to trade above critical trend lines and maintains strong volume, reaching $0.52 could be a realistic target in the near future.