Stellar (XLM) Breaks Out as TVL Hits $97.7M—Is $0.284 the Next Target?
Stellar (XLM) is drawing renewed investor interest midweek, up nearly 5% and trading around $0.265 on Wednesday.
Quick overview
- Stellar (XLM) has gained nearly 5% midweek, trading around $0.265, driven by strong on-chain metrics and technical structure.
- The Total Value Locked (TVL) in Stellar's DeFi ecosystem has reached an all-time high of $97.7 million, indicating significant user engagement.
- XLM has broken out of a descending channel and reclaimed the 50-day SMA, suggesting a bullish shift in momentum.
- Traders are advised to watch for potential entry points above $0.265 or on a retest of $0.2590–$0.2530 for reduced risk.
Stellar (XLM) is drawing renewed investor interest midweek, up nearly 5% and trading around $0.265 on Wednesday. The rally is driven by a rare blend of on-chain strength and clean technical structure—something we don’t see every day in altcoins.
According to DeFiLlama, Stellar’s Total Value Locked (TVL) just hit an all-time high of $97.7 million, signaling record engagement with Stellar-based protocols. That kind of metric reflects more than just speculative flow—it suggests users are locking real value into Stellar’s DeFi ecosystem.
What’s particularly notable is the timing. Altcoin market activity tends to thin out midweek, yet Stellar’s breakout is happening as TVL surges and broader crypto sentiment remains cautious. That divergence is bullish, and it gives this move more credibility than your typical relief bounce.
The rise in TVL indicates broader adoption of Stellar’s DeFi tools, and with CEO Denelle Dixon recently pushing institutional adoption narratives, the platform seems to be turning narrative momentum into measurable growth.
XLM Technical Outlook: Bullish Channel Breakout Validated
From a chart perspective, XLM has broken out of a descending channel that’s defined most of its 2025 price action. More importantly, price has reclaimed the 50-day SMA at $0.2597 for the first time since May, signaling a shift in structure and momentum.
This breakout is being backed by a strong push in RSI, which now reads 59.98—just shy of entering the bullish expansion zone above 60. Recent candles show conviction: long-bodied green bars, higher closes, and little-to-no upper wicks. There are no reversal signals for now, and price seems to be preparing for another leg up.
Resistance is seen at $0.284, followed by the next major level at $0.3079. Support has flipped to $0.2530, the level that previously capped several failed rallies.
XLM Trade Setup: Breakout with SMA Reclaim
This setup is a classic case of a channel breakout with confirmation. For those who missed the breakout candle, there’s still room for a follow-through entry or a retest opportunity.
Primary Long Setup:
- Entry: Breakout continuation above $0.2650 or daily close confirmation
- Stop-loss: Below $0.2530 (recent breakout zone)
- Target 1: $0.2840
- Target 2: $0.3079
This setup is supported by the reclaim of the 50-SMA and rising RSI, both of which suggest that momentum is shifting in favor of bulls. A continuation pattern—like a bull flag or brief consolidation—near $0.265 could offer further confirmation before targeting $0.284.
Secondary Retest Entry:
If price pulls back to retest $0.2590–$0.2530 and prints a bullish engulfing or hammer candle, this becomes an ideal re-entry zone with reduced risk.
From my experience, when technical breakouts coincide with fundamental catalysts like all-time high TVL, they often spark multi-day continuation. Traders should monitor volume closely and adjust stops as price approaches resistance zones.
Only a daily close back below $0.2530 would invalidate the setup and warrant a reassessment.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save