- Stellar (XLM) is gaining traction, edging closer to a potential breakout amid a wave of optimism surrounding the integration of PayPal’s stablecoin, PYUSD.
- This development has sparked renewed investor interest and a bullish technical setup that could push XLM higher in the coming days.
XLM climbed nearly 1% on Monday, adding to a 5% gain from Sunday. After bouncing off the $0.2190 support zone, the token is now testing the upper boundary of a descending triangle pattern, formed by linking key highs from December 3 and May 10. A successful daily close above the $0.2600 resistance could mark the beginning of a sustained rally, with the next target set near the June peak of $0.2851.
Indicators support the bullish setup. The MACD histogram is rising above the zero line, showing growing buyer strength. Meanwhile, the RSI has crossed 52, signaling early signs of a potential trend reversal.
PayPal PYUSD Integration Ignites Stellar Investor Optimism
The growing buzz around PayPal’s announcement on June 11—that it plans to expand its PYUSD stablecoin to Stellar—has been a key catalyst in XLM’s current uptrend. The integration would place PYUSD alongside USDT and USDC, strengthening Stellar’s stablecoin ecosystem and reinforcing its role in cross-border remittances and PayFi infrastructure.
Although approval from the New York State Department of Financial Services (NYDFS) is still pending, speculation and social media chatter have increased. Influential figures in the crypto space, such as StephisCrypto, have helped amplify the excitement, pushing XLM prices higher in anticipation.
Open Interest and Volume Confirm Growing Trader Confidence
According to CoinGlass, XLM’s Open Interest has surged by 10% to $181.73 million, indicating fresh inflows into derivatives markets. Trading volume also climbed by 10% to $214.68 million. While the long/short ratio remains at 0.99, showing slight caution, overall trader sentiment appears bullish.
Outlook: Breakout or Rejection?
If XLM breaks above the descending triangle’s resistance, a rally toward $0.2851 is on the cards. However, failure to breach this level could push the token back to the $0.2190 support, prolonging its sideways movement.
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