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Stellar (XLM) has surged 40% following a double breakout, driven by strong technical signals, upcoming protocol upgrades, and increasing institutional adoption.
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The momentum is further supported by Franklin Templeton’s recent tokenization initiative and a notable rise in Stellar’s DeFi Total Value Locked (TVL), reflecting growing confidence in the network.
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According to COINOTAG, the combination of bullish chart patterns and ecosystem enhancements positions Stellar for a potential rally toward $0.6374.
Stellar (XLM) rallies 40% after dual technical breakouts, boosted by Protocol 23 upgrade anticipation and institutional trust, signaling strong growth potential.
Stellar’s Double Breakout Signals Renewed Bullish Momentum
Stellar’s price action recently demonstrated a compelling technical breakout from two significant bearish patterns, marking a decisive shift in market sentiment. The initial breakout occurred from a falling wedge pattern formed between January and mid-April 2025, a classic indicator of a potential trend reversal. Following this, XLM entered a brief consolidation phase within a smaller descending channel, which it subsequently broke out of, confirming the strength of the upward trend.
This sequence of breakouts has propelled Stellar’s price from approximately $0.25 to near $0.40, representing a near 40% gain. Technical analysts highlight that these movements suggest a projected upside target around $0.6374, based on historical resistance levels and volume profiles. The clear identification of support and resistance zones offers traders a strategic framework to navigate the ongoing rally.
Chart Analysis and Market Implications
Market experts emphasize that the dual breakout pattern is a robust signal of sustained bullish momentum. The initial falling wedge breakout often precedes significant upward moves, while the subsequent channel breakout reinforces confidence among investors. This technical setup, combined with increasing trading volumes, indicates that Stellar may be entering a new phase of price appreciation.
Moreover, the breakout aligns with broader market trends where altcoins with strong fundamentals and active development pipelines are attracting renewed investor interest. This technical strength could encourage both retail and institutional participants to increase their exposure to XLM.
Protocol 23 Upgrade and Institutional Adoption Drive Network Growth
Beyond technical factors, Stellar’s ecosystem is gaining traction through strategic upgrades and institutional partnerships. The upcoming Protocol 23 upgrade, slated for a governance vote on August 14, 2025, aims to enhance the Soroban smart contract platform by improving transaction execution speeds and state management efficiency. These improvements are expected to increase network scalability and attract more decentralized applications.
Institutional confidence is also rising, exemplified by Franklin Templeton’s recent tokenization of $446 million in U.S. Treasuries on Stellar’s blockchain. This milestone underscores the network’s capability to handle large-scale, real-world asset digitization securely and efficiently, positioning Stellar as a preferred platform for institutional-grade blockchain solutions.
DeFi Growth and Ecosystem Expansion
Supporting this momentum, DeFiLlama reported a 22% surge in Stellar’s Total Value Locked (TVL) within 24 hours, reaching $120.25 million. This increase reflects growing activity and liquidity in Stellar-based decentralized finance protocols, signaling enhanced user engagement and trust in the platform’s DeFi offerings.
The combination of protocol enhancements and rising institutional participation is fostering a positive feedback loop, potentially catalyzing further adoption and price appreciation. Analysts suggest that these developments could solidify Stellar’s position in the competitive blockchain landscape.
Conclusion
Stellar’s recent 40% price surge, underpinned by dual technical breakouts and bolstered by the forthcoming Protocol 23 upgrade and institutional endorsements, marks a significant phase of growth for the network. The convergence of strong chart patterns, ecosystem advancements, and increasing DeFi activity offers a compelling case for continued bullish momentum. Investors and traders should monitor these developments closely, as Stellar’s trajectory may present attractive opportunities within the evolving crypto market.
