Stellar Lumens (XLM) Surges 120% Amid Bullish Signals, Protocol 23 Upgrade

Stellar Lumens (XLM) is showing promising bullish signals as trader Peter Brandt highlights the necessity of closing above $1 to break free from its range-bound trading. Brandt emphasizes the importance of XLM maintaining support above its April low of $0.20 and, crucially, closing a monthly candle above the $1 mark. This threshold is pivotal for XLM to escape its current range-bound pattern and initiate a strong upward rally.

Brandt’s chart analysis reveals a compelling technical structure, featuring a multi-year ascending triangle combined with a long-term cup-and-handle pattern that has been developing since 2021. These formations historically precede significant price advances, supporting the possibility of a surge toward $7.20, which would elevate XLM’s market capitalization beyond $200 billion.

Despite the bullish outlook, Brandt advises caution, noting that until XLM decisively breaks above $1, the altcoin remains confined within a broad trading range. This perspective aligns with the current market dynamics where volatility and price consolidation persist.

XLM has demonstrated a notable correlation with XRP, which recently achieved a new all-time high. This relationship has led analysts to speculate that XLM could follow suit, potentially reaching new highs if market conditions remain favorable. However, the surge in Open Interest introduces heightened risk for short-term traders. Elevated leverage and increased speculative activity could result in amplified volatility, posing challenges for those attempting to capitalize on quick price movements.

Beyond technical factors, Stellar’s ecosystem is benefiting from significant fundamental developments. The upcoming Protocol 23 upgrade is a major milestone aimed at enhancing network scalability and efficiency. Scheduled for a Mainnet vote on August 14, 2025, this upgrade promises faster and more cost-effective smart contract execution.

In parallel, integration with PayPal’s PYUSD stablecoin is set to expand Stellar’s utility in global payments, offering low-cost transfer solutions. Additionally, THORWallet’s full support for Stellar Lumens enables seamless mobile DeFi interactions, including sending, receiving, and swapping XLM with multisig and institutional-grade security.

Stellar’s real-world asset (RWA) tokenization is another key growth driver. Stellar currently manages over $445 million in tokenized assets, predominantly overseen by institutional players. This substantial RWA backing adds a layer of credibility and long-term value to the XLM ecosystem.

Reflecting these positive developments, XLM has surged approximately 120% since early July, trading near $0.50. Stellar Lumens stands at a critical juncture, supported by robust technical patterns and significant fundamental upgrades. While Peter Brandt’s analysis points to a potential breakout above $1 as a key trigger for a strong rally toward $7.20, traders should remain mindful of the elevated risks associated with high Open Interest and market volatility. The combination of Protocol 23, PYUSD integration, and substantial real-world asset tokenization positions XLM favorably for sustained growth, making it a noteworthy asset for both long-term investors and strategic traders.