XLM crypto price breaks out as key DeFi metric hits all-time high
The XLM crypto price has staged a strong rally, moving above a key resistance level, which points to further gains as its open interest, decentralized finance assets, and stablecoin growth surge.
Stellar Lumens (XLM) rose to $0.30, its highest level since May 23, and 35% above the lowest point in June. Its market capitalization has jumped to nearly $9 billion.
DeFi Llama data shows that the total value locked in Stellar’s decentralized finance has soared to a record high of $98 million. This is a strong rally, as TVL started the year at $50 million. Including Franklin Templeton’s tokenized fund, Stellar’s TVL has jumped to over $543 million.
Additional data shows that the amount of stablecoins on Stellar has continued rising this month. The supply of USD Coin (USDC) in the network has jumped to $172 million, while EURC has climbed to $1.85 million. Rising stablecoin supply in a network signals growing utility.
Meanwhile, Stellar’s futures open interest and weighted funding rate have continued to grow. Open interest rose to $246 million, the highest level since January, a sign of strong demand. Spot volume jumped to nearly $927 million, with most of it on Binance and Bitget.
XLM crypto price technical analysis
The daily timeframe shows that the XLM price formed a double-bottom pattern at $0.2170 in April and June. This pattern had a neckline at $0.3323, its highest level in June this year.
Stellar Lumens price also moved above the upper side of the descending channel. This channel is part of a bullish flag pattern, a highly popular bullish continuation signal.
Stellar has jumped above the 50-day and 100-day Exponential Moving Averages, indicating that bulls are in control. Further, the Average Directional Index has moved above 20, a sign that the trend is gaining strength.
The Relative Strength Index has risen to its highest level since May. Therefore, the most likely scenario is a move up to the neckline at $0.3323. A move above that level will point to more upside, with the key level to watch at $0.4247, the 38.2% retracement level.
