-
Stellar Lumens (XLM) shows promising bullish signals as trader Peter Brandt highlights the necessity of closing above $1 to break free from its range-bound trading.
-
Technical patterns such as a multi-year ascending triangle and a cup-and-handle formation suggest a potential price target of $7.20 for XLM.
-
July’s momentum is driven by key developments including the Protocol 23 upgrade, PYUSD stablecoin integration, and $445 million in tokenized real-world assets, enhancing investor confidence.
Stellar Lumens (XLM) eyes a breakout above $1 amid strong technical setups and fundamental upgrades, with a potential surge to $7.20 on the horizon.
Peter Brandt Highlights Critical Resistance Level for XLM’s Bullish Breakout
Renowned market analyst Peter Brandt recently emphasized 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 Price Analysis and Prediction. Source: Peter Brandt.
Correlation with XRP and Elevated Open Interest Signal Mixed Short-Term Sentiment
Adding to the narrative, XLM has demonstrated a notable correlation with XRP, which recently achieved a new all-time high of $3.65. 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 to nearly $600 million 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.
Fundamental Catalysts Bolster Stellar’s Growth Prospects in July
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.
“Protocol 23 is here. All smart contracts get faster and cheaper,” announced Build on Stellar, underscoring the upgrade’s potential impact on the platform’s usability and adoption.
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. According to RWA.xyz, Stellar currently manages over $445 million in tokenized assets, predominantly overseen by institutional players like Franklin Templeton and Circle. 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 at the time of writing.
Conclusion
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.
