Stellar Lumens (XLM) Surges 25% as Bullish Breakout Looms

Stellar Lumens (XLM) is attracting renewed interest following a detailed technical analysis by crypto strategist Egrag Crypto. The analysis, shared via X, suggests that XLM is poised for a significant breakout. Currently trading around $0.395, the technical and fundamental indicators are aligning, prompting the analyst to advise, “Be ready.”

Egrag Crypto’s analysis highlights a long-term bullish setup spanning nearly a decade. The chart reveals a massive cup and handle pattern, a formation often associated with powerful bullish reversals. The “cup” stretches from 2018 to 2023, while the emerging “handle” forms the final phase before a potential breakout. XLM has repeatedly bounced from a reliable diagonal support trendline, marking key accumulation zones. Each previous bounce has led to significant rallies, and XLM’s current position suggests another move is building. The price is now approaching the upper boundary of this structure, signaling a potential breakout point.

Egrag identifies three major upside targets: the first near $0.45, the second around $0.65, and the third extending to $1.11, with an ultimate Fibonacci extension near $1.51. With XLM currently holding above the $0.39 mark, the asset appears to be entering the breakout phase highlighted in Egrag’s forecast.

Over the past week, XLM has surged by more than 25%, outperforming many other mid-cap cryptocurrencies. The rally comes as broader market sentiment improves. XLM’s breakout above the $0.37 resistance level has brought renewed confidence to traders, many of whom now see $0.45 as the next technical target. The price has also re-entered the upper zone of a multi-year ascending channel, adding further credibility to Egrag’s projection. If current momentum holds, a move toward the $0.65 and $1.10 zones may follow in the medium term.

Egrag’s bullish outlook coincides with positive developments within the Stellar ecosystem. Notably, Franklin Templeton recently tokenized over $445 million in U.S. Treasuries on the Stellar network, marking one of the largest real-world asset integrations in crypto to date. Additionally, Stellar’s upcoming Protocol 23 upgrade, which will introduce Soroban, its native smart contracts platform, is set for release in August 2025. Soroban is expected to enable advanced DeFi capabilities and programmable assets, broadening Stellar’s utility and appeal to developers and institutions alike.

Egrag Crypto’s long-range analysis presents a technically and fundamentally supported case for a major move in XLM. With the price nearing critical resistance and institutional activity on the rise, Stellar may be on the verge of a breakout not seen since its previous cycle highs. While nothing in crypto is ever certain, the combination of historical support, bullish technical patterns, and real-world use cases makes one thing clear: this could be Stellar’s moment. As Egrag advises, be ready.