XLM Price Plunge: 3 Compelling Reasons Stellar Is Primed for a Comeback

Stellar's native token XLM just took a nosedive—but don't write it off yet. Here's why this blockchain dark horse might leave its skeptics eating dust.

Institutional whales are circling

While retail traders panic-sell, on-chain data shows smart money accumulating XLM at bargain prices. Nothing moves markets like a few well-timed 8-figure buys.

The cross-border payments narrative isn't dead

Stellar's core use case—cheap, fast international transfers—just became 47% more attractive as SWIFT fees hit record highs (thanks, traditional finance).

Technical rebound signals flashing green

XLM's weekly RSI just hit its most oversold level since the 2022 crypto winter. History suggests double-digit bounces follow these extremes.

Of course, in crypto, even the surest bets can get rug-pulled by Elon's next tweet. But for now? Stellar's looking suspiciously like a coiled spring.

Why Stellar Lumens may rebound

Still, there are at least three main reasons why the XLM price will rebound, and possibly retest its year-to-date high of $0.5100:

• Stellar transactions and users are soaring. 
• Stablecoin volume and transactions are surging.
• XLM price formed a doji pattern, pointing to a rebound.

Nansen data shows that Stellar is one of the fastest-growing players in the blockchain industry. Its transactions jumped by 22% in the last seven days to 2.93 million. It had more transactions than ethereum (ETH), which processed 10 million.

More data shows that the active addresses jumped by 16% in the last seven days to 208,000. Its network fees jumped by 99% to $73,000, which is notable since stellar is known for low transaction fees. 

Second, XLM price may jump as its stablecoin growth gains steam. Its stablecoin supply has jumped by 15% in the last 30 days to $184 million, while its transaction volume soared by 40% to $1.8 billion. Stellar’s stablecoin addresses jumped by 33% to 260,000. 

It’s expected to benefit from President Donald Trump’s signing of the GENIUS Act into law last week, and likely become one of the top processors of USD Coin, a stablecoin.

XLM price has strong technicals 

The XLM token price will also rebound after forming strong technicals. On the daily chart, it has formed a doji candlestick, a popular bullish reversal pattern. 

A doji comprises of a small body and long upper and lower shadows. It implies that an asset’s price opened and closed at the same price. Additionally, the XLM price has remained above the 50-day and 25-day moving averages, indicating that it has completed its mean reversion.

Therefore, stellar price will likely continue rallying, with the next point to watch being at $0.5200, its highest point this year. This price target is about 20% above the current level.