Stellar’s native token XLM is back in the spotlight after a recent chart shared by crypto influencer Blacksea sparked fresh discussions about the asset’s long-term potential. The renewed attention comes as Stellar continues to advance its ecosystem through major network upgrades, institutional partnerships, and expanding real-world asset tokenization initiatives.
XLM’s Explosive Surge to $2.20 Ignites Bullish Debate
Crypto influencer Blacksea recently sparked discussion across the crypto community after sharing a chart showing XLM briefly surging above $2.20 on the Upbit exchange. The analyst pointed to the dramatic move as evidence that Stellar remains capable of delivering explosive rallies despite spending much of the past year in a prolonged downtrend.
A closer look at the daily LUMEN/USDT chart, however, reveals a more nuanced picture. While the spike was undeniably impressive, the move was followed by an immediate retracement back toward the $0.25 region. Such price action is often associated with a liquidity event, flash spike, or temporary order-book imbalance rather than a sustained breakout.
From a technical standpoint, the long upper wick signals strong rejection at higher levels, suggesting the market was unwilling to accept prices above $2. Nevertheless, the event has reignited bullish speculation among some traders who view it as a reminder of XLM’s upside potential during periods of heightened demand.
Meanwhile, XLM continues to find a strong footing in the $0.20-$0.26 range, a key support zone that has repeatedly attracted buyers since March. A sustained breakout above $0.30 could signal renewed bullish momentum and potentially pave the way for a broader recovery. Conversely, losing this support level would likely reinforce the bearish trend that has largely dominated Stellar’s price action since early 2025.
Stellar Pushes Ahead With Yardstick Protocol 26 Upgrade
Meanwhile, it is worth noting that XLM’s sharp spike comes just weeks after Stellar’s Yardstick and Protocol 26 upgrade went live on mainnet. According to the Stellar team, the upgrade is designed to improve network security, reliability, and operational precision while enhancing the capabilities of the Soroban smart contract ecosystem.
The Stellar Development Foundation believes the upgrade could help attract larger-scale participation from traditional finance (TradFi) institutions seeking blockchain-based financial infrastructure. The team also expects the enhanced network capabilities to support the growing market for tokenized real-world assets (RWAs), further strengthening Stellar’s position as a platform for enterprise-grade financial applications.
Interestingly, the development comes as the Depository Trust & Clearing Corporation (DTCC) recently announced a partnership with the Stellar Development Foundation to tokenize depository trust assets on the Stellar network. The initiative is currently projected to launch in early 2027, underscoring growing institutional confidence in Stellar’s infrastructure and its potential role in the rapidly expanding real-world asset tokenization market.
XLM Price Prediction: Can Stellar Stage a Sustained Recovery?
Market forecasts for XLM remain divided, though many analysts agree that the $0.20-$0.26 support zone will likely determine the asset’s next major move. If buyers continue to defend this region and broader crypto market conditions improve, XLM could potentially target the $0.40-$0.50 range in the medium term. More cautious forecasts, however, suggest the token may remain range-bound until a stronger catalyst emerges.
On the bullish side, market analyst Javon Marks recently suggested in an X post that XLM could be gearing up for a significant breakout. According to Marks, the token has the potential to rally to $0.681, while an even more bullish scenario could see XLM climb to $1.29. The projection has attracted attention from traders looking for signs that Stellar may be preparing for its next major move.
Interestingly, XLM’s recent spike above $2.20 demonstrated that both price targets are well within reach under the right market conditions. While the move was short-lived, it highlighted the token’s ability to generate explosive upside momentum when liquidity and demand align. As a result, investors are now closely watching what comes next for Stellar. According to CoinMarketCap, XLM currently trades around $0.26 and ranks as the 13th-largest cryptocurrency by market capitalization, placing it among the market’s most closely watched digital assets.
Josiah Oluwadare
