Stellar Lumens (XLM) processed $4.9 billion in a month, will it break through the $0.231 resistance level?

▲ Stellar (XLM)/AI generated image ©

Stellar Lumens (XLM) is gaining unstoppable upward momentum, armed with strong on-chain performance and expanding stablecoin adoption, moving beyond a mere speculative rally.

According to cryptocurrency market data aggregator CoinMarketCap on July 3 (local time), Stellar Lumens was trading at $0.204, up 4.07% from 24 hours prior. This performance is nearly double the average recovery of the overall cryptocurrency market (2.05%) during the same period, easily surpassing Bitcoin's (BTC) rise of 1.79% and demonstrating differentiated strength within the altcoin market.

The key driving force behind this surge is the explosively increasing real network usage. On-chain data shows that the stablecoin transaction volume processed on the Stellar network over the past 30 days surged by 32.6% month-over-month to $4,920,000,000. Media outlets analyze that this growth in practical utility forms a solid foundation for a sustainable rally, not just simple price speculation.

The recovery of overall market sentiment also acted as a positive factor. Bitcoin spot ETF funds, which had been recording net outflows, turned to net inflows for the first time in ten days, pushing up overall market fundamentals. Amidst this macroeconomic tailwind, XLM successfully absorbed the overall market's capital rotation, further bolstered by its own network growth narrative.

From a technical analysis perspective, Stellar Lumens' trend is also encouraging. It is currently trading stably above the 200-day Simple Moving Average (SMA) of $0.183, and if the short-term uptrend continues, there is a possibility of it heading directly to the $0.231 resistance level, which is the 23.6% Fibonacci retracement level. Experts diagnose that solidifying the psychological threshold of $0.20 is XLM's primary task.

However, macroeconomic market volatility remains a variable. Media outlets anticipate that Bitcoin's future direction at the $62,500 level will be a major macro trigger. If Bitcoin gives up the $60,000 support level again and the overall market contracts, a cautious view suggests that Stellar Lumens may also give back some of its gains and retreat to around the $0.183 mark, where the 200-day Simple Moving Average is located, to retest its support.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*