- Stellar retreats from yearly high as bulls face resistance after 90% weekly surge.
- Successful integration of PayPal’s PYUSD on Stellar blockchain joins strong open interest and volume to favor XLM bulls.
- Overbought RSI, seven-month resistance test XLM/USD bulls, while 50-month trendline challenges potential run-up toward all-time high.
- “Crypto Week” optimism combines with technical breakout and altcoin season hopes to defend bullish bias.
Stellar (XLM/USD) gained 2.0% intraday to $0.4810 during Monday’s European session, following a remarkable 90% surge last week. After reaching the highest level of 2025, XLM bulls are taking a breather amid a key seven-month resistance and an overbought 14-day Relative Strength Index (RSI).
This growing optimism is driven by PayPal’s successful integration of its stablecoin, PYUSD, on the Stellar blockchain, alongside rising Open Interest (OI) and trading Volume. Technical indicators also support the bullish outlook, with a strong breakout confirmed by positive signals from the Moving Average Convergence Divergence (MACD) momentum indicator.
Adding fuel to the fire, broader crypto market optimism and hopes for an upcoming altcoin season strengthen Stellar’s bullish bias. With this, the XLM/USD price remains firm just below crucial trendline resistance dating back to May 2021, as well as the immediate seven-month resistance level—both key barriers on the path to further gains.
PayPal’s PYUSD integration, Stellar protocol upgrade favor XLM Bulls
PayPal’s stablecoin, PYUSD, has recently integrated onto the Stellar network—joining Ethereum and Solana—giving a strong boost to XLM/USD amid hopes for greater visibility and renewed market interest. This rollout may be linked to Stellar Core v23.0.0rc2, a major protocol upgrade that improves network performance and scalability, reducing transaction costs and speeding up transfers.
Following the news, PayPal called this integration “a step forward for blockchain integration in global financial transactions.” Stellar’s extensive global payment network, spanning digital wallets and local payment systems in over 170 countries, is set to expand PYUSD’s reach worldwide. This also increases the service potential of PayFi, driving further innovation and adoption.
Stellar Lumens on-chain data points to bullish edge
Beyond strong fundamentals, on-chain data for Stellar Lumens (XLM) also points to bullish momentum. Open Interest (OI) and trading Volume have surged to their highest levels since December 2024, drawing major attention. Equally important is the recent rise in Total Supply Held by Whales, signaling growing confidence among big players.
According to the latest on-chain data from Santiment, XLM/USD’s total Open Interest surged to $251.57 million—the highest since December 2024. Meanwhile, XLM’s trading Volume hit a seven-month peak at $3.27 billion. Notably, whales holding over $5 million in XLM increased their share of the total supply to 53.88%, up from 53.10% on July 7.
‘Crypto Week’ optimism, Altcoin season buzz also lift XLM higher
Elsewhere, crypto market optimism is rising as upcoming Capitol Hill talks on the CLARITY Act, GENIUS Act, and Anti-CBDC Surveillance State Act could reshape regulations and open the door for more institutional investments. Meanwhile, a strong rally in altcoin prices—along with Bitcoin hitting fresh all-time highs—boosts hopes for an altcoin season, adding extra momentum to Stellar Lumens (XLM/USD) prices.
Technical analysis backs the bullish case
The daily chart of the Stellar Lumens (XLM/USD) highlights a successful upside break of the 200-day SMA, backed by the bullish MACD signals even if the overbought RSI and an upward-sloping resistance line from December 2024 challenges immediate upside around $0.5200.
XLM/USD: Daily chart portrays start of Bull-Run
Despite facing resistance near $0.5200 from a seven-month trendline and overbought RSI, XLM/USD remains in bullish territory. A clear breakout above the 200-day SMA, currently around $0.3070, and bullish MACD signals keep buyers optimistic.
If bulls overcome the immediate hurdle, attention will shift to the downward-sloping resistance from May 2021 near $0.6100. A successful break there opens the path toward 2024’s peak at $0.6370 and potentially the all-time high around $0.8050 from 2021.
Alternatively, if selling pressure increases, support may first appear at March’s high of $0.3622, followed by the 200-day SMA at $0.3070. A sustained drop below that could lead a gradual decline toward the 2025 low near $0.2000, with interim supports at $0.3000 and $0.2500.
Overall, XLM maintains a strong bullish setup, with buyers eyeing a breakout despite the current pullback.
