Stellar (XLM) Jumps 12% Amid PayPal PYUSD Buzz and Triangle Breakout Hopes
XLM up 12% this week, 1% today as it extends bounce from key support. The rally was triggered after XLM bounced off $0.2190 mid-week...
Quick overview
- XLM has risen 12% this week and 1% today, bouncing off key support at $0.2190.
- The rally is driven by a descending triangle pattern with resistance at $0.2600, which needs to be broken for a potential target of $0.2851.
- Investor sentiment is boosted by PayPal's announcement to integrate its stablecoin PYUSD into the Stellar network, pending regulatory approval.
- The derivatives market shows bullish sentiment with a 10% increase in Open Interest and trading volume, indicating traders are anticipating a significant move.
XLM up 12% this week, 1% today as it extends bounce from key support. The rally was triggered after XLM bounced off $0.2190 mid-week and formed a descending triangle with resistance at $0.2600. This is getting attention as XLM tests the top of the triangle.
Technical indicators are bullish. MACD is showing green bars and RSI is above 52. But a daily close above $0.2600 is needed to confirm the breakout and potentially target $0.2851.
Failure to break resistance and XLM could consolidate with downside risk to $0.2190.
PayPal’s PYUSD Fuels Stellar Buzz
Investor sentiment is high after PayPal announced it will be integrating its stablecoin, PYUSD, into the Stellar network. The news was announced on June 11 and is a big move for PayPal to expand its PayPal Finance (PayFi) and cross-border remittance capabilities.
Pending approval from the New York State Department of Financial Services (NYDFS), PYUSD will join other existing Stellar-based stablecoins like Tether (USDT) and Circle’s USD Coin (USDC). The crypto community is loving it with social media going crazy after the announcement.
Key points:
- Announcement Date: June 11
- PYUSD Goal: Global remittances via Stellar
- Awaiting: NYDFS approval
- Market Reaction: Sharp increase in sentiment and Open Interest
Derivatives Market Shows Bullish Sentiment
Adding to the bullish case, CoinGlass shows a 10% increase in Stellar’s Open Interest (OI) to $181.73 million. This is a big jump in buying activity in XLM derivatives which is often seen as a proxy for market sentiment.
In addition:
- Trading Volume: Up 10% to $214.68 million
- Long/Short Ratio: 0.99, slightly bearish but a near even battle between bulls and bearsSo it looks like traders are waiting for a big move. If it happens, more inflows could follow in the next few days.
Conclusion:
XLM up 12%, Open Interest up and PYUSD coming. Resistance at $0.2600 is the final hurdle.
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