Key Insights:
- Stellar (XLM/USDT) was in a lower trend in a falling channel pattern, and the price respected the upper and lower channel line.
- The XLM market cap vs. total value locked (TVL) chart showed a potential bullish divergence.
- XLM gained prominence after its significant partnership with PayPal to enable the use of USD, a stablecoin denominated in US dollars.
XLM crypto continued to decline in a descending channel, with the upper resistance confining price despite TVL and PayPal’s collaboration offering insights that could deem the scenario bullish.
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XLM Crypto Price Action
Stellar Lumens (XLM) was in an obvious lower trend in a falling channel pattern, and the price respected the upper and lower channel lines.
XLM crypto bounced off the upper trendline at $0.29 and remained below the important horizontal area of $0.3313.
This rejection may suggest extension of the bearish trend. Should XLM fail to hold the current area at around $0.2625, a visit to the lower edge at $0.1750 -$0.1600 could materialize.
But, should price regain the mid-range and move towards the top edge, then an upside breakout of $0.29 may test the $0.3313 resistance.
The MACD indicator showed a decreasing bullish momentum, as the MACD line crossed under the signal line, and the histogram displayed red color, which supported the negative risk in the short term.
Until MACD turns positive and the price retakes $0.29 with conviction, the bulls may be left on the sidelines.
The first indicator of a reversal trend would be a clean break out above the $0.3313. Conversely, a failure to stay above $0.26 may invite more losses.
$0.2625 and $0.2900 may be of close interest to the traders as the directional continuation in the identified descending channel is expected.
XLM Market Cap vs. TVL Chart
The XLM market cap vs. total value locked (TVL) chart showed the potential bullish divergence.
As much as the market cap dropped since its recent high in early 2025, TVL continued to rise and broke above the $15 billion mark.
This discrepancy indicated hidden development in utility and protocol participation despite declining price figures.
Such divergences had been followed by trend reversals in the past, and hence, the present configuration was of interest.
The area served as a significant area of support, and it repeatedly rebuffed the selling pressure.
This TVL resilience suggested that the inflow of capital to Stellar-based protocols was still healthy and could assure long-term investors that their faith was not misplaced.
Should TVL maintain its current upward trend and the market cap remains subdued, then at some point, the valuation discrepancy may be resolved through a price increase.
The difference between the TVL strength and flat market cap put XLM amongst assets that stood to gain from a possible rebound.
The 0.2500 level of support therefore, seemed technically and fundamentally appealing to investors waiting for a rebound.
XLM Crypto Collaboration With PayPal
XLM crypto gained prominence after its partnership with PayPal to enable the use of PYUSD, a stablecoin denominated in US Dollars.
The tie-up was a historic first in Stellar’s evolution as a cross-border payment solutions company, and how it might be used in global finance.
PYUSD’s presence on Stellar’s blockchain cemented its reputation as a top-shelf digital asset that was ready for use in the mainstream.
However, in spite of the uncertainty in the market, XLM was among the coins that appeared resilient, having gained a measly 0.36% in price in the last 24 hours, and is currently trading at $0.26.
Nevertheless, the volume of trade fell significantly by 52.07% to close at $168.77 million. The decreasing volume indicated a tentative participation in the market, but the stability in prices implied consistent underlying interest.
This announcement emphasized the advancement of Stellar as a remittance-focused project to a comprehensive blockchain infrastructure capable of hosting high-quality stablecoins.
The collaboration with PayPal may significantly increase the use of Stellar within compliant financial systems, providing XLM with a long-term bullish story.