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- XLM has bounced from a critical demand zone as selling pressure weakens.
- Weekly indicators still show caution, with major resistance overhead.
- XRP’s XLS-66 protocol could unlock large-scale institutional yield.
Stellar (XLM) is showing early signs of stabilization after its latest pullback, while Ripple’s XRP ecosystem is gaining a fresh catalyst through institutional lending innovation. Together, these developments highlight a market that remains cautious but increasingly selective, with investors watching for confirmation of trend shifts and real-world utility.
Although broader crypto sentiment is still fragile, both assets are approaching pivotal moments that could shape their near-term direction.
XLM Reclaims Key Demand Zone
Stellar has rebounded from a closely watched demand area after briefly dipping with the wider market. At the time of writing, XLM trades near $0.1907, down about 1.9% over 24 hours, with daily volume around $252 million and a market capitalization near $6.2 billion.
Technical analysts note that downside momentum appears to be easing. According to Rose Premium Signals, Stellar’s descending structure is weakening, opening the door for a potential early bullish phase if support continues to hold.
The setup is still developing, but upside reference levels being monitored include a near-term target around $0.36, followed by resistance near $0.44, and a more ambitious zone close to $0.51. These levels suggest that a sustained bounce could offer meaningful upside if momentum improves.
Weekly Indicators Still Urge Caution
Despite the rebound, Stellar’s higher-timeframe indicators remain mixed. The weekly RSI sits near 32.8, below its signal line, pointing to weak momentum and mild oversold conditions rather than a confirmed reversal.
XLM also continues to trade below its major weekly moving averages:
- 20-week SMA near $0.272
- 50-week SMA near $0.300
- 100-week SMA near $0.244
These levels now act as overhead resistance. On the positive side, the 200-week SMA around $0.178 remains below price, offering structural support.
The MACD remains negative, but the narrowing histogram suggests bearish pressure is gradually fading.
XRP Gains Institutional Yield Narrative
While XLM focuses on technical stabilization, XRP is seeing a utility-driven boost. On January 29, Evernorth announced plans to leverage the XRP Lending Protocol (XLS-66) to generate institutional-grade yield on idle XRP held on the ledger.
The initiative targets a large pool of XRP that currently sits unused in cold storage or on centralized exchanges. Through Single-Asset Vaults, institutions can lend XRP natively on-chain, with the protocol handling interest rates, repayments, and penalties automatically.
Also Read: U.S. Bank, PwC & Stellar Are Quietly Building the New Global Money Rail
This approach avoids the tax complexity and smart contract risks associated with bridging assets to other chains, while offering a single, transparent source of truth for lenders and borrowers.
Stellar’s price action suggests a possible shift toward stabilization, but confirmation will require breaks above key resistance levels. Meanwhile, XRP’s evolving yield infrastructure adds a fundamentally bullish narrative focused on long-term utility.Together, these developments reflect a market that is no longer moving in unison—projects with technical resilience and real-world use cases are beginning to stand out.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
