Key takeaways
- The broader crypto market has recovered from Monday’s lows and is now looking toward new highs.
- XLM is trading above $0.35 as the network prepares for a major upgrade.
Stellar Lumens to implement Protocol 23 upgrade
XLM, the native token of the Stellar network, has moved into positive territory after a weak start to the week that mirrored underperformance across Bitcoin and other major cryptocurrencies. After defending support near $0.34 over the weekend, XLM has climbed back above $0.35 as traders position for a significant protocol upgrade.
Stellar’s upcoming Protocol 23 is designed to modernize network infrastructure and enhance interoperability. The development team describes the upgrade as a building block for expanding Stellar’s role in tokenizing and servicing real-world assets (RWA). That market on Stellar already exceeds $460 million in on-chain value, and the team expects adoption to increase after the upgrade goes live.
Market participants are watching closely because improved infrastructure and clearer RWA capabilities could broaden Stellar’s utility and support higher demand for XLM. If adoption of RWA on Stellar accelerates alongside successful deployment of Protocol 23, the native token may see upward momentum in the days and weeks ahead.
XLM targets $0.40 as a bullish pattern forms
On the 4-hour XLM/USD chart the trend looks constructive after recent gains. Price action established a key support level at $0.344 during Monday’s selling pressure and has since recovered. Current accumulation appears concentrated between $0.35 and $0.36 as traders rebuild positions.
Technical indicators point toward a return of bullish momentum: the 4-hour RSI sits around 52, signaling neutral-to-positive momentum, while the MACD lines are approaching a bullish crossover that would confirm rising buying pressure. Volume confirmation will be important to validate any breakout attempt.
If the recovery continues, XLM may challenge the $0.37 resistance in the near term and could push toward the $0.40 psychological level. A decisive move above $0.37 would likely require sustained volume and follow-through buying.
Conversely, failure to sustain the current bounce could lead to a rejection and renewed pressure toward the $0.34 support. A prolonged bearish turn could see XLM fill the existing fair value gap and test the $0.29 area, a level not visited since July.
Traders should monitor on-chain activity around Stellar’s RWA integrations and watch for confirmation from price and volume before assuming a sustained upward trend. The Protocol 23 rollout represents a near-term catalyst, but execution and market reaction will determine whether XLM can maintain gains and reach the $0.40 target.