XLM jumps 8.14 percent in 24 hours as stablecoin activity explodes! What do the latest figures mean?

Stellar‘s native token XLM is displaying strong upward momentum, supported by a key technical breakout and soaring buying interest. At the time of writing, XLM is trading at $0.1983, having surged 8.14 percent over the past 24 hours. The daily trading volume reached $517.25 million, while its market capitalization stands at $6.73 billion.

Technical signals point to an uptrend

Crypto analyst Alpha Crypto Signal highlights that XLM has completed a rounded bottom breakout on the four hour chart, signaling a possible trend reversal. This formation is known in technical analysis for marking periods when a downtrend is losing steam and buyer interest is intensifying.

The strength of this rally has been reinforced by robust buy-side volume, further bolstering the short-term outlook for XLM. The token has also decisively moved above its 20 period exponential moving average and its 50 period simple moving average, both indicators of recovering momentum and a healthier technical posture in the near term.

Analysts note that if XLM experiences a pullback towards its breakout region, that area could emerge as a new buying opportunity. As long as the price remains above the neckline of the rounded bottom pattern, the bullish scenario is likely to persist, with the next key technical target identified at $0.24.

Stablecoin activity surges on the network

Data from MSB Intel reveals a striking increase in stablecoin activity on the Stellar network. Over the past 30 days, transaction volume soared to $4.92 billion, marking a 32.61 percent increase compared to the previous month.

Stellar is widely recognized as a blockchain platform designed for cross border payments and low cost digital transfers. The spike in stablecoin usage suggests that users are turning to Stellar’s infrastructure for quicker and more affordable transactions.

Glossary: A stablecoin is a digital asset that typically aims to maintain a value pegged to another asset, such as the US dollar. They are frequently used in cross border payments and on chain transfers as they can reduce price volatility.

Broader market recovery bolsters XLM

The uptick in network activity for Stellar has coincided with improved conditions across the wider cryptocurrency market, supporting XLM’s recent rally. In particular, the recovery phase that followed the latest Bitcoin pullback has revived risk appetite for many altcoins.

The recent jump in XLM is being viewed as a product of both the recovery in technical indicators and the robust growth of transaction activity on the Stellar network. Short term, markets are watching closely to see whether XLM can hold its critical support zone and continue its move toward the $0.24 target.

The post XLM jumps 8.14 percent in 24 hours as stablecoin activity explodes! What do the latest figures mean? appeared first on COINTURK NEWS.