Key Insights:
- XLM transacts over 50 million tokens in just three days.
- Bullish patterns target a breakout above $0.28 toward $0.39.
- Network utility and user engagement show steady growth.
XLM activity has increased sharply, with over 50 million tokens moved in just three days. This spike comes as the price holds near strong support and shows signs of a possible breakout. Market analysts and chart watchers are closely observing $0.28 as a critical level that could define Stellar’s next major price move.
Transaction Volume Spikes as Network Utility Expands
The Stellar network completed more than 50 million XLM worth of transactions during a three-day transaction cycle. The higher transaction rate indicates the ecosystem gains broader use cases. According to developers and community observers, the network activity shows sustained utilization across Stellar’s infrastructure rather than just speculative trades.
This trend matches the growing focus on real-world uses for blockchain. Stellar’s work in cross-border payments and financial services helps keep the network active. These efforts may also show that long-term holders are starting to accumulate more XLM.
Technical Patterns Suggest Bullish Reversal Setup
Market analyst Ali shows an inverse head and shoulders pattern established on 4-hour time frames, indicating a possible market reversal. The inverse head and shoulders pattern shows the left shoulder developed in late March, while the head appeared at the April low, and the pattern is creating its right shoulder now. A below-$0.29 breakout of the neckline could propel XLM price to $0.33, $0.36, and potentially $0.39.
The patterns will become valid when the $0.24 support area remains stable. The stability of $0.24 support allows the patterns to show that higher gains can be expected if XLM gains momentum.
On-Chain and Indicator Metrics Reflect Strengthening Conditions
The price structure of Stellar shows two bull reversal patterns that have gained widespread recognition. XLM just moved out of a falling wedge pattern which typically signals an uptrend transition from downtrend conditions on the 1-day timeframe. The breakout occurred around the $0.26–$0.27 level, setting a projected target of $0.50 as seen in the chart.
A good number of technical indicators rest between neutral zones, which indicates that the price might start shifting in a definite direction. RSI has reached a level of 46 within daily time frames without entering either bullish or bearish territory.
The Money Flow Index (MFI) stands at 47.63, meaning the money exchange between buyers and sellers remains equal. Short-term market demand remains strong based on the positive Cumulative Volume Delta readings, which indicate faint buying pressure.
The price of Stellar resides within a major support zone stretching from $0.24 to $0.25. Traders are staying interested by holding their XLM at the current price. The uptrend could continue if the price goes above $0.30 with strong buying.
XLM Distribution Data Signals Mixed Outlook
Current XLM wallet distribution data points to both bearish and neutral trends regarding decentralization but shows a positive trend regarding retail investor participation. About 90% of holders own less than 100 XLM. Approximately 40% of the total Stellar supply is concentrated among the top 10 wallets, which presents an elevated risk of market manipulation as well as sudden price shifts when large holders decide to sell their holdings.
Future token inflation lacks uncertainty because Stellar currently has 31 billion XLM circulating out of its total 50 billion maximum supply. The current dilution risk is still high despite the 19 billion XLM remaining from the maximum supply of Stellar’s 50 billion XLM. Retail investor dominance supports long-term adoption, but concerns about ownership concentration and limited decentralization of the supply remain issues for institutional investors and those focused network’s reliability.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.