The price of Stellar (XLM) has shown significant growth over the past week, reaching multi-month highs. This is driven by several factors including large financial inflows and expectations surrounding a PayPal stablecoin launch.
Sharp Surge in XLM Price
XLM increased by more than 83% last week, now trading at $0.435, approximately 15% higher than the previous day. Despite a 3% drop in daily trading volume, the cryptocurrency is showing sustained upward momentum.
Technical Analysis and Accumulation Cycles
Accumulation behavior is evident as XLM's price rises while trading volume slightly decreases. This suggests that larger players and retail investors are cautiously taking positions ahead of the new trading session. It is expected that an increase in trading volume on Monday could confirm a broader recovery trend.
Fundamental Factors Supporting Growth
Currently, there is growing demand within Stellar's DeFi ecosystem, with total value locked increasing by 22% to over $120 million. At the protocol level, the community is preparing for the Protocol 23 upgrade, aimed at enhancing smart contract performance and network speed.
The increase in Stellar XLM's price is supported by both technical signals and fundamental factors, making it one of the most interesting assets in the market. Investors are eagerly awaiting further developments, particularly with the upcoming vote on the protocol upgrade and potential PayPal integration.
