XLM price has rebounded in the past few weeks, moving from the September low of $0.3437 to a high of $0.4145 as the crypto market recovery happened. It remains about 25% below the year-to-date high of $0.5185. This article explores some top reasons why the Stellar Lumens price may be on the cusp of a strong bullish breakout soon.
Stellar Network Growth and Potential ETF Filing
One of the main catalysts for the XLM price is the ongoing network and ecosystem growth, which may accelerate in the coming weeks.
Data compiled by Nansen shows that Stellar’s active addresses jumped by 14% in the last 30 days to 88.4 million. This growth makes it one of the fastest-growing players in the crypto industry.
Stellar’s active addresses also continued growing in the last 30 days. They jumped by 3% to 331,857.
Meanwhile, Stellar’s network has also continued growing in the real-world asset tokenization industry, where its assets have jumped by 20% in the last 30 days to $640 million. This growth makes it the 8th biggest player in the RWA industry after Ethereum, ZkSync, Polygon, Arbitrum, Avalanche, Aptos, and Solana.
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The biggest players in the Stellar Network’s RWA platform are Franklin Templeton, Circle, WisdomTree, Etherfuse, and GMO Trust.
Stellar has become a major player in the stablecoin industry, where its assets have jumped by 11% in the last 30 days to $255 million. The stablecoin holders in Stellar jumped to 560,000, a trend that may continue after the recent Protocol 23 upgrade. Stellar’s total value locked in the network jumped by 12% to $158 million.
Stella price will likely benefit from the upcoming crypto altcoin ETFs approval, which will happen this month if the government shutdown ends. While no company has filed for an XLM ETF, there are signs that this will happen in the coming weeks.
XLM Price Technical Analysis
The daily timeframe chart shows that the XLM price bottomed at $0.3437 in September, where it formed a double-bottom pattern. This is one of the most common bullish reversal chart patterns in technical analysis.
XLM price has formed the highly bullish falling wedge chart pattern on the daily chart. This pattern is made up of two descending and converging trendlines, which often leads to a strong breakout.
Stellar price has moved above the 50-day Exponential Moving Average (EMA). It has formed a small bullish flag pattern. Therefore, the most likely scenario is where the coin stages a strong bullish breakout, pointing to more gains in the coming weeks.
If this happens, the next key level to watch will be at $0.5185, up by 31% from the current level. A move above that level will point to more gains, potentially to last year’s high of $0.6357, up by 60% above the current level.
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