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Stellar Price Analysis – XLM Eyes $0.210 After DTCC Tokenization News Triggers Rally

Highlights:

  • Stellar jumped 20% to $0.177 as DTCC partnership news lifted buying volume.
  • DTCC’s tokenization plans boosted XLM sentiment, with first assets expected in 2027.
  • XLM could target $0.210 if bulls break $0.178, but Bitcoin weakness remains a risk.

Stellar (XLM) is making a strong showing on a day that most cryptocurrencies are in the red. When writing, Stellar was trading at $0.177, up 20.22% intraday. Stellar trading volumes have also shot up intraday, up 1,113.7% to $1.01 billion. Rising volumes indicate that buyers are coming in strongly and could keep pushing Stellar higher in the foreseeable future. Looking ahead, there is a good chance that the momentum Stellar has built up in the day will be sustained. 

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DTCC Partnership with XLM Triggers Rally

One of the primary reasons for the rally is the partnership with the DTCC. The DTCC has chosen Stellar to help tokenize assets valued at over $100 trillion. This aligns with DTCC’s strategy of using multiple chains for tokenization.

Under the deal with Stellar, DTCC will launch its first tokenized assets in 2027. The move has excited the market because Stellar is now expected to be at the center of the growing push towards tokenization. The impact on Stellar is big for two reasons. The first is Stellar’s embedding in the ongoing convergence of blockchain technology and traditional finance. 

The impact is that Stellar could attract more conservative investors thanks to DTCC’s involvement. This could shore up demand for Stellar and send its price rocketing to new highs in the future. There is also the perception aspect.

Unlike in the past, investors are increasingly choosy about the cryptocurrencies they invest in. This explains why cryptocurrencies are not pumping together as they used to do in the past. Under these circumstances, Stellar has received a major boost thanks to its partnership with DTCC. That’s because investors will now perceive Stellar as having strong fundamentals, a factor that could attract new capital over time. 

Stellar Has Strong Adoption In the Payments Space

Besides its tokenization, Stellar remains one of the best cryptocurrencies for everyday payments. Its low transaction fees and near-instant transactions have led to its adoption growing over the years. The spotlight is getting after the DTCC partnership, which is likely to see more banks and everyday people use Stellar for payments.

Analysts are already pointing to Stellar as undervalued due to its strong global adoption for payments. As analyst hype on social media grows, Stellar could be headed much higher in the short- to medium-term. Overall, the indicators point to Stellar rallying to new highs in the short- to medium-term. 

Bitcoin’s Price Action Could Stall Stellar’s Momentum

However, the intraday pump still faces downside pressure. That’s because XLM still trades in line with Bitcoin’s overall direction. Bitcoin is currently facing major downside risks after breaching the $75,500 support level.

If short sellers take control and push Bitcoin below $70k, the entire cryptocurrency market could enter a major correction. Such a move could see Stellar give up all the gains it has recorded over the last 24 hours. Overall, Stellar could keep riding the DTCC wave as long as Bitcoin keeps pushing higher. 

Technical Analysis – XLM Hits Multi-Month Resistance After Intraday Rally

Stellar’s intraday rally has pushed it to a key multi-month resistance at $0.178. If Stellar bulls sustain momentum and close above the $0.178 resistance, a rally to $0.210 could follow. However, if bulls fail at the $0.178 resistance, two scenarios could play out.

XLM Price Chart
XLM Price Chart: TradingView

The first is a consolidation around the resistance. The second scenario is one in which bears regain control and push Stellar to the $0.143 multi-month support level. Of these scenarios, a rally to $0.210 is more likely due to the strength of the DTCC partnership hype.

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