Key Insights :
- Franklin Templeton will move $1.7T using the Stellar blockchain.
- XLM daily activity tops 20 million, outpacing rivals.
- Traders eye a breakout above $0.29 for a $0.34 target.
Stellar (XLM) price strengthens as institutional and retail interest increases. This momentum is reinforced by robust network activity and key technical indicators signaling further growth.
Daily operations on Stellar have exceeded 20 million. On the other hand, a major finance firm, Franklin Templeton, plans to adopt the network, boosting market confidence in the token.
Stellar Activity Surges Past 20 Million Daily Activity
The blockchain of Stellar has seen a 35% rise in daily activity, surpassing 20 million, the highest level since late 2024. The sharp uptick reflects strong usage, particularly in token transfers and decentralized exchange (DEX) operations.
XLM price has responded to this activity, pushing above its 200-day moving average and trading around $0.27. Analysts note that while this level has triggered volatility in the past, the current move suggests a possible trend reversal.
RSI sits near 58, which is considered bullish but still below the overbought threshold. Support currently sits between $0.260 and $0.265, while resistance levels are forming near $0.295 and $0.300. If Stellar can maintain levels above $0.29, analysts expect a rally toward $0.34 in the short term.
M2 Liquidity Growth Highlights XLM’s Upside Potential
Data analysis indicates that Stellar price performance diverges from M2 Global Money Supply values. The global monetary liquidity (M2 supply) continues to rise, indicating increasing financial expansion.
However, XLM has yet to reclaim its previous peak levels, suggesting a potential lag in price response. The token has shown past price appreciation after global liquidity rose following a previous divergence pattern.
A possible XLM breakout appears likely since the existing price patterns show signs of reestablishing their historical relationship. The current dollar value of $0.277 is still below previous market peaks.
However, with strong macro liquidity conditions, the price has room for further upside potential. Market traders monitor Stellar price movements and trading volume patterns to validate uptrends requiring breaking through crucial resistance points.
Franklin Templeton to Leverage Stellar for $1.7 Trillion Asset Transfers
The Stellar project attracts growing attention from institutional organizations. The financial giant Franklin Templeton declared its plans to transfer $1.7 Trillion in assets through blockchain infrastructure. It includes Stellar network operations.
The firm selected Stellar because its transaction model offered low costs and high efficiency. The transaction costs on Stellar amount to around $120 for processing 50,000 transactions. On the other hand, traditional financial systems typically charge $50,000.
By integrating the Stellar network, Franklin Templeton anticipates saving over $200 Million annually. The system enhances efficiency by eliminating errors and streamlining transactions, reinforcing its value in financial operations.
Stellar is a robust blockchain network offering institutions low-cost, fast financial transactions. Its efficiency and reliability make it an ideal choice for streamlining operations in the financial sector.
Technical Indicators Support Continued Uptrend
XLM exists within its Bollinger Band range on the upper portion of the 1-day XLM/USDT Binance chart. A position near the top range of Bollinger Bands indicates market strength in most cases.
The Money Flow Index reading 69.79 signals strong capital inflow, reflecting growing market interest. However, potential short-term exhaustion could be a key factor in monitoring for near-term price action.
RSI maintains a reading of 55.65, indicating moderate bullish momentum despite available future price growth possibilities. The Current Cumulative Volume Delta shows a negative shift, which signals temporary scares from sellers in the market.
The development has left the overall upward trend structure of the market unaffected. Additional bullish sentiment emerges from data presented on Coinglass.
Stellar experienced zero or negative funding rates during February and March. However, the price shifted to positive funding in mid-April. When traders pay for long position holdings, it indicates an increasing confidence that prices will rise.
The market shows higher interest in upward price movement since sentiment improves. However, the movement toward favorable funding rates indicates bearish pressure has weakened as more traders will probably accumulate this asset.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
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