Stellar (XLM) Surges 5% as PayPal Plans Stablecoin Integration

Stellar (XLM) has been maintaining a bullish stance above the $0.235 mark, attracting the attention of market analysts and traders alike. Currently, XLM is trading around $0.2485, having faced resistance near the $0.2539 level. Technical analyst CryptoTony remains optimistic about XLM, stating that he will stay long on the asset as long as the $0.235 support level holds. This level, which previously acted as resistance, has now become a reliable support zone.

The weekly chart indicates that XLM broke out earlier in 2024 after a prolonged period of sideways movement between mid-2022 and late 2023. Following the breakout, the asset surged but later corrected to retest the same support. Short-term technicals show that XLM is forming an ascending channel, with price action pulling back after a recent rally. Despite the dip, it remains above the 50-period Simple Moving Average (SMA) at $0.2415, suggesting continued bullish sentiment in the short term.

Support around $0.2465 is acting as a key pivot. The Relative Strength Index (RSI) has eased from overbought levels and is now at 68.36. If the price stays above the trendline and the $0.2465 support zone, analysts expect a retest of $0.2539. A break above this could push XLM toward $0.2592 in the near term.

In a significant development, PayPal announced plans to expand its stablecoin, PayPal USD (PYUSD), to the Stellar blockchain. This move is pending regulatory approval from the New York State Department of Financial Services (NYDFS). Stellar’s infrastructure is renowned for enabling fast, low-cost cross-border payments and financial access in underserved markets. The integration is part of PayPal’s PayFi initiative, which aims to provide global users with real-time working capital and remittance tools.

According to PayPal Vice President May Zabaneh, stablecoins represent the practical use case for cryptocurrencies. Stellar CEO Denelle Dixon stated that PYUSD on Stellar will provide financial access to individuals and businesses across more than 170 countries. This expansion enhances Stellar’s real-world utility and boosts XLM’s visibility within the broader digital payments ecosystem.