Stellar Lumens (XLM) Price Prediction: 3 Reasons Why It Will Soar

Updated

May 8, 2025

Gambar Stellar Lumens (XLM) Price Prediction: 3 Reasons Why It Will Soar

Jakarta, Pintu News – Crypto markets awaiting the Federal Reserve’s interest rate decision witnessed price consolidation of Stellar Lumens this week. The token dropped to its lowest level since April 22 at $0.26. This article will delve into the three main reasons that support the prediction of an XLM price increase in the near future.

Stablecoins on Stellar are rising sharply

The Stellar ecosystem is showing a significant increase, especially in the number of stablecoins. Data from DeFi Llama shows that the amount of stablecoins on the network has reached a record high of $350 million, far surpassing this year’s low of $147 million.

The partnership with MoneyGram, one of the biggest players in the money transfer industry, further strengthens Stellar’s position. This collaboration allows users to send USD Coin which can then be withdrawn by recipients at local MoneyGram agents. This is important as the volume of funds transfers via stablecoins continues to rise, with Visa estimating that it will reach $1.6 trillion by 2030.

Also Read: Will Solana Reach $420 in 2025? Check out the Prediction!

Relationship with Ripple (XRP) Promises Upside

Stellar Lumens (XLM) is often considered the ‘little brother’ of Ripple as it was formed by Jed McCaleb, who was also part of the original Ripple team. Although both networks operate on different models-Ripple focuses on financial institutions while Stellar is oriented towards peer-to-peer payments-the price of XLM often follows the price trend of XRP.

The latest price prediction for Ripple (XRP) shows the potential for significant price increases, especially if the Ripple ETF is approved by the SEC. This is expected to have a positive impact on the XLM price as well, especially with Canary filing for a spot XLM ETF.

Strong Technical Indicators Support XLM

Technical analysis shows very bullish indicators for Stellar Lumens (XLM). The falling wedge pattern formed on the daily chart shows two converging and declining trend lines, with a potential breakout as the two lines almost converge. The Awesome Oscillator and Moving Average Convergence Divergence (MACD) indicators show a bullish divergence pattern.

The frequent bullish breakouts that follow this pattern suggest that XLM prices are likely to rebound, with a key resistance target at $0.6415, which was the highest peak in November last year, about 150% above current levels.

Conclusion

With significant stablecoin growth, close ties to Ripple (XRP), and favorable technical indicators, Stellar Lumens (XLM) is expected to experience significant price increases in the near future. Investors and market watchers should pay attention to these dynamics to make informed investment decisions.

Also Read: Bitcoin Poised for a Big Spike Amid US Economic Chaos?

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.