The XLM price held steady on Thursday, July 17, as market participants celebrated the passage of the GENIUS Act and its stablecoin’s growth gained momentum. Stellar Lumens token was trading at $0.4645, much higher than this month’s low of $0.2170.
GENIUS Act Passes as Stellar’s Stablecoin Growth Continues
The House of Representatives passed the closely watched GENIUS Act on Thursday after days of discussion. This is a major win for Stellar, as it is one of the largest chains specializing in stablecoins and payments within the industry.
The GENIUS Act, once signed into law, will establish the rules that all stablecoins operating in the United States must adhere to. For example, all stablecoins must be backed by the US dollar and other short-term government bonds.
All stablecoin issuers must provide regular disclosures of their assets and undergo audits by a certified accounting firm. These rules aim to protect holders and prevent collapses like those of Terra Luna.
Stellar Lumens token will benefit from this bill because it is becoming a top USDC processor. Artemis data shows that the number of stablecoin transactions on Stellar has jumped by nearly 20% over the last 30 days, exceeding 9.3 million.
Additional data indicates that the supply of XLM tokens on the network increased by 21% to $181 million. This is notable since it started the year at below $100 million.
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Most importantly, the adjusted transaction volume of USDC on Stellar has increased by 53% over the last 30 days, exceeding $1.6 billion. That is a sign that the network’s growth was accelerating.
Meanwhile, the number of transactions and active addresses has jumped in the past few weeks. Its transaction count jumped by 5% to 75 million, while active addresses soared to over 337k.
XLM Price Technical Analysis
The daily chart indicates that the XLM price has experienced a strong bull run over the past few days. This rebound happened after it formed a double-bottom pattern at $0.2175 and the neckline at $0.3352, its highest point in May.
Stellar price has formed a golden cross pattern as the 50-day and 200-day moving averages crossed each other. This cross is one of the most bullish patterns in technical analysis.
Stellar is slowly forming a bullish pennant pattern, which is a popular continuation sign. The MACD and the Relative Strength Index (RSI) have all pointed upwards.
Therefore, the token is likely to continue rising as bulls target the key resistance point at $0.6353, the highest swing in November of last year. This target is about 35% above the current level.
The alternative scenario is where the Stellar Lumens token drops and retests the key support at $0.3352, its highest swing in May.
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