
Stellar (XLM) Doubles in Q3: After a weak first half of 2025, XLM rallies on Protocol 23, PYUSD integration, and DeFi growth.
Analysts Eye $7.20 XLM Target: Veteran trader Peter Brandt predicts XLM could hit $7.20 if it holds key support levels.
In the past year, the XRP price has delivered an impressive gain of 495.7%. In the same period, Stellar (XLM) has recorded a solid 355.3% rise. Now, with XRP drawing attention from major institutions and analysts predicting even bigger moves, many are wondering if the XLM price could follow a similar path.
The first half of 2025 wasn’t favorable for Stellar (XLM). The altcoin dropped 20.7% in Q1 and continued to slip by 9.62% in Q2. However, Q3 has marked a clear shift in trend. The price has already doubled, signaling a strong return of buying momentum.
Veteran trader Peter Brandt suggests XLM has long-term upside, provided it holds two key levels above $0.20 (its April low) and a firm close above $1. According to him, if these conditions are met, the token could rally to $7.20.
Why XLM Price is Surging?
Behind the scenes, Stellar has been making progress across several fronts, boosting confidence among users and institutions alike.
Protocol 23 Upgrade
The Stellar Development Foundation has released the Protocol 23 Upgrade Guide. This upgrade, set for a mainnet vote on August 14, 2025, aims to make smart contracts faster and more cost-efficient. It’s a crucial step in scaling Stellar’s decentralized finance (DeFi) capabilities.
PayPal’s PYUSD Integration
Stellar recently integrated PayPal’s stablecoin PYUSD into its network, allowing for global, low-cost transfers. This move expands the utility of PYUSD and taps into Stellar’s established infrastructure for cross-border payments.
THORWallet Support
THORWallet has added full support for XLM, enabling users to send, receive, hold, and swap the token. This adds further accessibility and broadens its reach within DeFi applications.
Focus on Scalability
Stellar is aiming to process up to 5,000 transactions per second by enhancing its smart contract execution and increasing parallel processing. This would position it among the fastest-performing blockchain networks.
Institutional Adoption
Franklin Templeton has tokenized over $445 million worth of U.S. Treasuries on the Stellar network. This is a strong endorsement of Stellar’s role in real-world financial applications and could lead to broader institutional use.
Is XLM Crypto Gearing Up for a Bullish Move?
Stellar’s technical chart shows clear bullish signs, supported by long-term patterns and momentum indicators.
Key data:
- RSI (Relative Strength Index): 78.25 (overbought)
- 50-day MA: $0.285
- 100-day MA: $0.280
- 200-day MA: $0.309
Analysts highlight the formation of two powerful patterns:
- An ascending triangle that has been developing since 2018
- A cup-and-handle pattern has been taking shape since 2021
While the current RSI suggests a short-term pullback is possible, the long-term structure points to a continued bullish trend.
Recent data shows XLM’s open interest has surged to $600 million, a record high for the asset. This indicates strong interest from leveraged traders, often a sign of confidence. However, it also increases the risk of volatility. If sentiment shifts, the high leverage could trigger sharp price movements in either direction.
What’s Ahead for Stellar (XLM) Price?
Stellar’s recent price surge, strong technical patterns, and rising institutional adoption suggest that the project is well-positioned for long-term growth. However, current overbought signals and high open interest point to the possibility of short-term volatility.
If the broader crypto market remains favorable and Stellar continues to deliver on its development milestones, the $7.20 target projected by analysts may not be far-fetched.
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FAQs
XLM’s price is rising due to a combination of ecosystem upgrades (Protocol 23), growing institutional adoption (e.g., Franklin Templeton), strategic partnerships (PayPal’s PYUSD), and technical indicators pointing to a bullish breakout.
Stellar is gaining momentum with institutional backing, ecosystem upgrades, and strong technical formations. However, investors should be aware of short-term risks such as overbought RSI and high open interest, which may cause volatility.
According to analyst Peter Brandt, if XLM holds above $0.20 and breaks past $1, it could reach a price target of $7.20. This would imply a market cap above $200 billion.