Analysts Predict a $0.5 Surge as Stellar (XLM) Shows Signs of Stability

Stellar (XLM) has shown resilience in recent trading sessions, defending the crucial $0.37 horizontal support level. After a brief market-wide downturn, XLM bounced back with a 4% gain, currently trading at around $0.39. This rebound has sparked renewed optimism among analysts, who suggest that the token could be setting up for a decisive upward move.

Over the past few years, Stellar has struggled under a long-term descending resistance line, facing multiple failed breakout attempts. However, repeated tests of resistance tend to weaken it, meaning the next attempt could finally open the path toward higher price targets.

Analysts See $0.5 Target on the Horizon

Technical indicators for XLM remain mixed, with the Relative Strength Index (RSI) hovering near 50 and the MACD barely above neutral territory. Still, market sentiment is shifting positively as the token holds firm above support levels. Analysts note that if XLM breaks through $0.41, momentum could quickly carry the price toward the $0.50 zone.

Short-term chart patterns also support the bullish case. Stellar’s price action appears to be forming a descending wedge, a pattern traditionally associated with breakouts. If the pattern plays out, the next leg higher could test resistance at $0.48, setting the stage for a potential climb to $0.50 and beyond.

Institutional Adoption Boosts Stellar’s Case

Beyond technical analysis, Stellar’s growing ecosystem is adding fuel to bullish predictions. The integration of PayPal’s PYUSD stablecoin on the Stellar blockchain has boosted transaction volumes, while partnerships with institutions like MoneyGram and Mastercard highlight its role in global payments.

Furthermore, Stellar Development Foundation’s efforts in real-world asset (RWA) tokenization have attracted major players such as Ondo Finance, Mercado Bitcoin, and Centrifuge. At Meridian25, the foundation announced that over $3 billion worth of RWAs are now accessible on Stellar’s network, an achievement that reinforces its utility and adoption.

Outlook

If Stellar can maintain support above $0.37 and break through near-term resistance, analysts believe the path to $0.50 is realistic. With institutional adoption and technical setups aligning, XLM may be preparing for a stronger rally, potentially eyeing levels between $0.58 and $0.65 in the medium term.

For now, traders are closely watching the $0.41 breakout level as a key trigger point that could define Stellar’s trajectory heading into October.