Stellar (XLM) Surges 26% on Protocol 23 Upgrade and Institutional Interest

Stellar (XLM) experienced a significant 26% price surge within a 24-hour period, driven by several key factors including the upcoming Protocol 23 upgrade, increased institutional interest, and a broader bullish trend in the altcoin market. The Protocol 23 upgrade, approved by Stellar validators on July 11, is set to go live on August 14. This upgrade introduces smart contracts and improved scalability, allowing the network to process more transactions seamlessly. The announcement has already sparked investor interest, highlighting the potential for further growth.

One of the major catalysts for the price surge is the endorsement from Franklin Templeton, which has decided to use Stellar to tokenize U.S. Treasury money. The value of these tokenized treasuries is over $445 million, indicating strong institutional confidence in Stellar's real-world financial applications. This endorsement has further boosted investor confidence in XLM, leading to a significant increase in its price.

Technically, XLM breached a crucial resistance level at $0.387, which is the 61.8% Fibonacci retracement level. The Relative Strength Index (RSI) is hovering above 80, indicating high bullish strength but also suggesting caution. This technical breakout validates that traders are optimistic about the price rising further. Additionally, the broader altcoin market has been experiencing a rally, with Bitcoin's new all-time high of $118,760 on July 11 prompting investors to take profits and invest in altcoins such as XLM, XRP, and ADA, which all rose 10–25%. Ethereum's value relative to Bitcoin also rose more than 8% this week, suggesting a move toward other coins.

The Fear & Greed Index stands at 69, indicating a state of greed in the market. Altcoin trading volumes have increased by 105% in a week, creating a risk-on environment that is conducive to a robust XLM rally. According to EGRAG Crypto, Stellar Lumens is exhibiting a strong bullish pattern. XLM's price is currently at about $0.373 and has confirmed a break above a long-term trendline, which has historically resulted in huge rallies. The chart shows a repeated "cup and handle" formation, a bullish pattern that has triggered more than 900% price jumps in the past. If this pattern repeats, analysts believe XLM could be positioned for a similar move.

Looking at the anticipated targets, the initial strong resistance area is $0.62 and $0.93. If XLM breaks through that level, it may target higher levels, with the next target being $1.27, followed by the more ambitious target of $2.13. This $2.13 level represents an incredible 1,100% increase over the current price. If the entire crypto market enters a full bull run and interest in Stellar's blockchain solutions increases, XLM could even surge to extreme levels of $4.05 or $8.36, as indicated by the top section of the long-term price channel. However, it is important to note that these projections are largely based on market sentiment, global conditions, and ongoing developments within the Stellar ecosystem. Investors should conduct their own research before making any investment decisions in the crypto market.