XLM Price Prediction: Stellar Lumens Bucks Market Trend to Rally Higher, Eyes $0.500

XLM price returned to the upside on Wednesday on a day when the wider cryptocurrency market retreated following Bitcoin's return to sub-$100,000 territory.

Stellar Lumens (XLM) price returned to the upside on Wednesday, bucking the trend in a day when the broader cryptocurrency market retreated following Bitcoin’s return to sub-$100,000 territory.

A slew of bearish crypto news items emerged on Wednesday, including the revelation that the total crypto market cap dropped by $300 billion in the preceding 24 hours. However, Stellar’s price trajectory went in the opposite direction, with XLM trading up by 2.1% and changing hands at $0.426 at the last check.

Stellar’s price performance is likely to remain under pressure in the near term, given the broader bearish market sentiment. But its ascent signals an underlying potential to rally upwards in the coming days.

The coin is also one of the crypto assets whose design and utility could endear it to institutional investors in the era of the incoming Trump administration. A key development in Stellar’s institutional integration came to the fore last week when it announced a partnership with Fonbnk.

The partnership will enable over 300 million unbanked SIM card holders in Africa to convert their airtime credits to USDC stablecoin. That is a key milestone that gives a mass market access to mainstream financial services and could drive up XLM price.

As far as technicals go, XLM price is marginally above the $0.415 mark, a key support level for the last week. Holding above that level could increase the likelihood of ascending to the psychological $0.500. Conversely, breaking below that level could trigger bearishness.

XLM Price Prediction

XLM price pivots at $0.415 and the Money Flow Index (MFI) signals a likely continuation of the upside. The buyers will have their way if the coin holds above that level. The upward momentum will likely meet initial resistance at $0.450. Clearing that barrier could strengthen the momentum and potentially test $0.471.

On the downside, moving below $0.415 will favour the sellers to take control. That will likely see XLM price find initial support at $0.390, just below the Volume Weighted Moving Average mark. Breaking below that level will invalidate the upside narrative and an extended control by the sellers could take the price lower to test $0.373.