Stellar (XLM) surges 86% in a week, driven by market rally and PayPal integration news

Stellar (XLM) has been on a remarkable upward trajectory, with an 85% price spike in recent days. This surge has been driven by a combination of factors, including the broader cryptocurrency market rally and positive developments within the Stellar ecosystem. As of the latest reports, XLM was trading at $0.46, marking a 20% increase in the past 24 hours and an 86% gain over the last week.

An artificial intelligence (AI) model has forecasted that XLM could potentially push past the $0.50 resistance level by the end of July. This prediction is based on several possible price scenarios outlined by the AI model. In a bullish case, driven by continued market strength or positive project developments, XLM could climb to between $0.55 and $0.62. A neutral scenario might see the price consolidate between $0.42 and $0.48, potentially retesting the support level. However, if momentum fades due to a Bitcoin (BTC) cooldown or profit-taking, XLM could retreat to the $0.35 and $0.40 range.

The AI model’s base case assumes Bitcoin remains above the $115,000 to $119,000 range and that altcoin sentiment stays strong. Under these conditions, XLM could reach $0.55 to $0.58 by the end of the month. If Bitcoin’s dominance rises or investor risk appetite weakens, XLM may struggle to maintain its current levels and drop toward $0.40. Technically, the AI model noted that support lies between $0.35 and $0.38, a zone that previously acted as resistance. On the upside, $0.50 remains a key psychological barrier, with further resistance at $0.60 to $0.65 levels last seen in early 2022.

Overall, XLM’s ongoing strength has been fueled by Bitcoin’s record-breaking surge above $119,000 and renewed interest in altcoins. A key catalyst was the announcement that PayPal would integrate its stablecoin PYUSD on the Stellar network, pending regulatory approval. This news triggered a significant price movement, pushing XLM from $0.345 to $0.416 as traders priced in future demand and liquidity. Despite the bullish momentum, the AI model cautions that XLM’s sharp 86% weekly gain could prompt a short-term correction if not supported by strong fundamentals and sustained volume.

According to the analysts' forecast, in a bullish scenario, XLM could climb to between $0.55 and $0.62 by July 31. This prediction is based on the current market trends and the anticipation surrounding the upcoming Protocol 23 upgrade, which has fueled investor interest and optimism. The price surge is a testament to the growing confidence in the Stellar network and its potential for future growth. Investors are closely monitoring the developments, as the successful implementation of Protocol 23 could further boost the price of XLM. The market's bullish sentiment is also reflected in the overall cryptocurrency landscape, with other major coins like Bitcoin and Ethereum showing strong performance. This positive momentum is expected to continue, potentially driving XLM to new heights in the coming weeks.