Stellar price prediction: Breakout attempt signals bullish outlook after network upgrade news

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Stellar rises 6.98% after protocol 27 upgrade

Highlights

Stellar deployed Zipper (Protocol 27) on mainnet, significantly upgrading the network and enhancing credential and authentication features.
Following the protocol upgrade, XLM trading volume surged over 300% to approximately $873 million, indicating substantial investor engagement.
Technical indicators signal strong bullish momentum with high probability of price ranging between $0.1849 and $0.2017 over the next few days.

Network upgrade fuels volume surge as demand for XLM rises

Stellar Org publicly confirmed via X the mainnet deployment of Zipper (Protocol 27) on Wednesday, marking a significant upgrade to the network. According to the announcement, this major release has triggered a surge in transactional activity, with XLM trading volume increasing by over 300% to approximately $873 million. The Protocol 27 upgrade introduces advanced credential and authentication delegation tools, streamlining account abstraction and enabling developer identity verification, which collectively enhance Stellar’s network utility and support strong demand for XLM.

Buyer control holds as overbought signals flag pullback risk

Technically, XLM is trading above its MA-20 at $0.1885 and MA-50 at $0.1844 on the working timeframe, in addition to the long-term MA-200 at $0.182. The Ichimoku Kijun sits at $0.1874 and acts as immediate support. The Relative Strength Index (RSI) is at 68.99, reflecting strong buy momentum, while the Commodity Channel Index (CCI) indicates an overbought condition. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both signal a buy, and the Stochastic RSI remains neutral. Bull/Bear Power continues to show buyer dominance, further supported by the Awesome Oscillator. This technical alignment suggests continued buyer control but also signals a possibility of a short pullback from overbought levels.

Range-bound trading likely as breakout and risk scenarios diverge

Over the next two to three trading days, XLM is expected to fluctuate within a typical volatility band of $0.1849 to $0.2017. The probability of continued upward movement is very high, with over 80% likelihood, while the chance of a downward reversal remains low at below 20%. The most probable scenario sees range-bound trading, but a sustained breakout above resistance could extend gains, whereas a drop below immediate support would introduce short-term downside risk.

Anton Kharitonov, expert at Traders Union, sees the recent Protocol 27 mainnet upgrade as a positive catalyst for Stellar. He notes strong technical alignment and buyer momentum, but remains cautious as indicators show overbought conditions. The analyst expects price to remain within the identified $0.1849–$0.2017 range, with a slight bias toward continued upside unless immediate support fails. "Until Stellar confirms strength above current resistance, I remain defensive and watch for any signs of reversal from these elevated levels."

Earlier, analysts noted that despite network upgrades and institutional adoption, technical headwinds continued to weigh on Stellar’s price performance. The current surge above all major moving averages and a decisive buy signal across multiple indicators suggest a shift in momentum, with traders advised to monitor for a sustained breakout above resistance as the next catalyst.

Source of Data: XLM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.