Stellar (XLM) has piqued the interest of investors as the coin surges over 80% over the last 7 days. While previously on a descending channel, the coin recently saw a turn of events leading to its current rally. On the day, XLM is up over 9% as it trades above $0.43. 

Additionally, Stellar’s on-chain metrics are showing signs of increased interest. In particular, the number of active addresses has surged over the past week, further highlighting potential for upside price movement. 

XLM Surges 80% in a Week: What’s Driving the Rally? 

After several months of sideways price movement, Stellar finally found its footing surging over 80% over the last 7 days. As per data by CoinMarketCap, the coin is currently priced at $0.4232. Additionally, this means that the coin is up by 9.46% on the day. 

Surging to the current level, the coin has also broken out of a key channel. As shared by Ali Charts (Ali Martinez) on X on July 12, the coin broke out of a descending channel. This channel, indicating a bearish price movement, has run since mid December 2024. Hence, the recent breakout marks a significant move for XLM. 

The recent Stellar price breakout can be attributed to a recent move by PayPal. The global payments giant confirmed recently that it will launch its USD-backed stablecoin PYUSD on the Stellar blockchain. This announcement potentially ignited confidence across XLM stellar investors thus sparking the recent rally. 

PayPal’s choice of Stellar for the PYUSD stablecoin launch majorly stems from the low cost of transactions across the network. The network facilitates fast transactions with a low fee of $0.00001 per transaction and speeds of 3 to 5 seconds settlements. This makes Stellar suitable for cross-border payments. However, PayPal’s stablecoin integration to Stellar is still pending NYDFS’s approval. 

Stellar’s Active Addresses and Transactions Surge

With Stellar gaining traction across crypto investors, the number of active addresses has experienced a hike. According to data by Nansen, the number of active addresses has surged from 65K to 80K. At the moment the active addresses sit at 80.56K, up by 13.8%. 

“Active addresses on @StellarOrg are rising since a week ago, going from 65K to 80K,” Nansen wrote on X. 

Additionally, the number of transactions happening on the network has surged. As per the chart above, transactions on the Stellar network have surged by 27.1% over the last 24 hours with 5.82 million transactions recorded. 

Analysts Eye $0.45 as the Next XLM Price Target

Amid the current Stellar (XLM) rally, crypto analysts are optimistic that the coin will continue to move upwards. Ali Charts, for instance, predicted that the coin could reach $0.45 soon as the price broke out from the descending channel.

“$0.45 looks like the next target!” he wrote on X. 

Scopuly, also seconded Ali Charts prediction, identifying $0.45 as the next target. “Next upside target: $0.45, backed by Fibonacci levels,” Scopuly noted in a post.

However, he further noted that the coin could face resistance at $0.419. Key support zones also lie at $0.370, and $0.346, if a pullback occurs. Investors must keep watch of technical indicators like the RSI to identify potential correction.