Key Takeaways
- The broader cryptocurrency market has rebounded from Monday’s low and is now targeting new highs.
- XLM is trading above $0.35 ahead of a key network upgrade.
Stellar Lumens Prepares for Protocol Upgrade 23
XLM, the native token of the Stellar Lumens blockchain, is showing positive movement following a sluggish start to the week. This weaker performance coincided with the downturn of Bitcoin and other leading cryptocurrencies.
Currently, XLM is trading above $0.35 after successfully holding the support level at $0.34 over the weekend. The token may experience further growth as it approaches the crucial upgrade. The Protocol 23 upgrade aims to modernize the network’s infrastructure and enhance its interoperability.
According to the Stellar team, this upgrade represents a significant step towards expanding Stellar’s utility in the realm of real-world assets (RWA). The RWA market on Stellar is currently valued at over $460 million, and the team anticipates considerable growth once the new protocol is implemented.
With the upgrade and the anticipated rise in the RWA market, the native token has the potential to increase in value in the coming days and weeks.
XLM Targets $0.40 as Bullish Setup Emerges
The XLM/USD 4-hour chart remains bullish and effective, with XLM recovering over the past few weeks. The price established a crucial support level at $0.344 during heightened selling pressure on Monday.
The market has since initiated a recovery, with accumulation currently taking place between $0.35 and $0.36. The RSI at 52 indicates that bullish momentum is returning, while the MACD lines are on the verge of entering positive territory.
If the recovery continues, XLM could surpass the resistance level of $0.37 in the coming hours and approach the psychological threshold of $0.40. However, the potential breakout above the resistance at $0.37 will depend on sustained volume validation.
Conversely, if the market fails to rally, XLM may face a rejection and revert to the support level of $0.34. A prolonged bearish trend could push XLM down to fill the FVG gap, potentially falling to the support level of $0.29 for the first time since July.
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