• Stellar (XLM) breaks out from a prolonged downtrend, signaling a potential strong bullish reversal in the coming days.
• Stellar joins the LOAN Protocol, entering DeFi with lending, borrowing, and yield-earning features for XLM holders.
• Fibonacci targets project a $2–$8 range, marking the next resistance zones if momentum continues.

Stellar (XLM) has broken out from a prolonged downtrend and is showing potential for a strong reversal, mirroring the broader market sentiment. Its price over the last 24 hours has risen 0.81% and 13.2% over the last week.

At the time of writing, XLM is trading at $0.4013 with a market capitalization of $12.83 billion. However, its trading shows uncertainty with a decline of 3.78%, reflecting the cautiousness of investors.

Source: CoinMarketCap

XLM Moves Into DeFi With LOAN Protocol Launch

A prominent crypto analyst revealed that Stellar (XLM) has officially joined the LOAN Protocol, unlocking new DeFi capabilities for its holders. The integration enables users to lend, borrow, and earn rewards without selling their core XLM holdings. This marks a crucial step in bringing regulated, real-world utility to the Stellar ecosystem.

With XLM now supported alongside XRP and HBAR, users can use their assets as collateral, access instant liquidity, and earn yield through LOAN token incentives. As lending and borrowing go live, Stellar continues to position itself at the heart of institutional-grade DeFi infrastructure, building the rails for the future of global finance.

Also Read: Stellar Breakout Emerging, Could XLM Soar Beyond $1 Soon

Stellar Eyes $2–$8 Range After Bullish EMA Flip

The crypto analyst, ChartNerd, highlighted that Stellar (XLM) has reclaimed a major technical milestone after flipping its three-month 20 EMA into solid support in Q3, a move many see as the spark for a new bullish phase. This shift often signals renewed momentum and growing confidence among traders. With sentiment turning, XLM’s setup now looks like a launchpad ready for ignition.

Source: X

Analysts observe that Fibonacci extension targets fall in the $2 to $8 bracket, and these describe the subsequent potential resistance areas if momentum is sustained. There is validity in the phrase “the rocket is refueled” when Stellar creates pressure below major levels. If buyers keep the lid on above the 20 EMA, XLM may turn out to be one of the brightest altcoins in the nest cycle.

Stellar (XLM) Community Shows Strong Bullish Trend

According to the data from CoinMarketCap, the community attitude is highly positive, and 85% of the voters believe in a rising market move. Of the approximately 175.7K total votes, the majority anticipate higher prices. This implies that high optimism and positive market outlook dominate voters.

Source: CoinMarketCap

Conversely, just 15% of voters express a bearish sentiment, promising potential decreases. It is this minority perspective that implies confined worries for downward movement. Generally, the sentiment indicates strong optimism and prevalent investor optimism.

Also Read: Stellar (XLM) Targets $0.50 as Resistance Break Sparks Bullish Outlook