XLM, the native token of the Stellar network, traded around $0.167 early Friday, up more than 10% over the week after closing above a key descending trendline at $0.158. The breakout came alongside a sharp rise in network usage and a sustained shift to positive funding rates in derivatives markets.
Network activity reaches three-month peak
Data from Chainspect showed that Stellar processed 14.19 million transactions on Thursday, the highest daily total in the past quarter.
The surge in throughput coincided with rising liquidity on the network, with derivatives markets reinforcing long exposure as funding rates stayed in positive territory.
Derivatives funding signals continued demand
Market data indicated that XLM’s funding rate stood at 0.011% on Friday, having turned positive earlier in the week. Historically, similar shifts have preceded strong upside moves.
The positive rate shows that traders running long positions are paying those short the token, pointing to persistent demand on the derivatives side rather than a crowded short market.
Price action and key technical levels
Technically, XLM is holding above its 50-day exponential moving average (EMA) at $0.164, which now acts as immediate support following the breakout above $0.158.
However, the token remains below the 100-day EMA at $0.180 and well under the 200-day EMA near $0.215, leaving the broader structure in a corrective phase rather than a confirmed bullish trend.
Upside levels currently in focus include:
- Initial resistance around $0.180
- Additional barriers at $0.201 and $0.2159
- Higher Fibonacci retracement targets near $0.242 and $0.275
On the downside, support is clustered between the 50-day EMA and the former breakout line at $0.158. A clear break below this zone could open a move toward $0.136, a prior swing low that also aligns with key Fibonacci levels.
Momentum indicators flash mixed signals
Momentum readings are sending a neutral-to-cautious message. The Relative Strength Index (RSI) is hovering around 55, indicating neither overbought nor oversold conditions.
The Moving Average Convergence Divergence (MACD) histogram is mildly positive, suggesting that downside pressure is easing but not yet pointing to a strong bullish impulse.
Fundamental backdrop improves with regulatory clarity and stablecoin launch
The technical recovery is unfolding against a backdrop of improving fundamentals for the Stellar ecosystem.
AllUnity this week launched EURAU, a fully reserved euro-denominated stablecoin on Stellar, designed to comply with Europe’s MiCA regulatory framework. The new asset aims to support regulated, cross-border settlements and broaden the network’s appeal for payment and banking use cases.
In March, a joint classification by the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission designated Stellar’s asset as a digital commodity. The move reduced a layer of regulatory uncertainty that had weighed on participation from larger market players.
Outperformance amid steady broader market
XLM has gained about 8.3% over the last seven days, outpacing the broader cryptocurrency market’s 3.1% rise over the same period. The outperformance comes as total digital asset capitalization has held near $3.5 trillion, a relatively calm backdrop that allows asset-specific news to drive price moves.
Analysts note that maintaining price action above the $0.164 support area could reinforce confidence in a push toward $0.180, a level seen as a key dividing line between the current consolidation phase and a more sustained recovery attempt.
Downside risks and longer-term levels
Should XLM fail to hold above the $0.158 breakout zone, market focus could shift back to lower support bands. A deeper pullback would put the $0.1468 region in view, roughly aligned with the token’s 52-week low, and potentially threaten the recent bullish structure.
Protocol upgrade adds to watch list
Beyond price and trading metrics, market participants are also tracking the “Yardstick” upgrade, which went live on Stellar’s testnet on April 16.
The upgrade is designed to introduce more robust benchmarking and improve host functions across the system. While not an immediate price driver, such technical enhancements are viewed as important to the network’s long-term competitiveness and may support sentiment if successfully deployed to mainnet.
Want deeper insight into XLM’s role in altcoins? Explore our guide on altcoins beyond Bitcoin to sharpen your strategy.
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