Stellar (XLM) Eyes $0.28 as U.S. Bank Enters Stellar Stablecoin Market

U.S. Bank launching its own stablecoin on the Stellar blockchain marks a significant step for traditional finance embracing blockchain technology. The market cap for stablecoins on the Stellar blockchain has grown by an astonishing 53% from last year, and the real-world assets market cap has skyrocketed by an unprecedented 196% to $890.2 million.

By doing so, U.S. Bank is positioned as a major adopter of blockchain technology, leveraging Stellar’s efficient and inexpensive infrastructure. With stablecoins increasingly being adopted as a bridge between digital currencies and traditional money, U.S. Bank’s entry into this sector is an indication that mainstream banking is incorporating blockchain to improve banking efficiency and provide new financial products.

Also Read: Stellar (XLM) Eyes $0.28 After Roadmap Signals Stablecoin and Lending Growth

XLM Nears Key Support, With Potential Upside to $0.28 

However, the crypto analyst, GainMuse, revealed that XLM is starting to stabilize with the removal of short-term pressures, and the price has seen a bounce from a tight base near the lower support level in its price range. This has occurred following a reaction from a significant area of demand, in which the cryptocurrency has seen support in the past.

Source: X

Since the price is trying to keep itself above this key demand area, Stellar may be ready to experience a recovery toward $0.28 if this trend continues. However, the market is still very volatile, and if this support is not sustained, there may be more risks of decline. Investors should be cautious as XLM passes through this key phase.

XLM Technical Outlook Suggest Cautious Optimism

Looking at the weekly chart of XLM, the price is currently trading inside a range after experiencing some volatility. The RSI is currently at 39.96, which is below the midpoint of 50 and indicates weak support for the bulls and a weak trend towards the bears. The moving average of the RSI is also pointing downwards.

Source: TradingView

Furthermore, MACD is bearish as it remains below the signal line, and it is still negatively aligned due to the widening of the histogram. Although past bullish factors of MACD have weakened, current factors point out that there is potential for continuation of this trend or a change in momentum.

Also Read: Stellar (XLM) Set to Soar: Price Targets $0.255–$0.570 Revealed