Stellar Lumens (XLM) has once again caught the market’s attention, enjoying a 3% uptick over the past 24 hours as investors digest the ripple effects of its upcoming network infrastructure overhaul. Between September 1 and September 2, the cryptocurrency danced its way from $0.36 to $0.37, demonstrating a robust 5% volatility that had traders buzzing with excitement. The $0.35 support level provided a safety net amid selling pressures, while the $0.37 resistance proved to be a formidable opponent twice, yet trading volumes soaring above the daily average of 31.2 million tokens underscored sustained institutional interest. This follows a pattern of institutional adoption, which we detailed in Stellar Rebounds 3% on Institutional Interest as Blockchain Payments Gain Traction.
Rising Institutional Appetite
The latest price movement seems to have been fueled by an uptick in trading volumes, with 2.7 million units changing hands in the closing hours of the session. This spike allowed XLM to momentarily breach the $0.37 threshold before settling comfortably above $0.36. Analysts at CoinDesk Data are taking note, suggesting that the consolidation above the $0.36 mark, coupled with systematic accumulation around key support levels, might indicate that institutional players are laying the groundwork for a more significant push upward.
“Stellar’s recent price action is a testament to its resilient market structure,” says crypto analyst Fiona Chen. “The market’s ability to consolidate in the face of volatility suggests that investors are confident in the protocol’s long-term prospects.”
A Prelude to Protocol 23
However, it’s not just the price action that’s capturing attention. Leading South Korean exchanges, Bithumb and Upbit, have announced a suspension of XLM deposits and withdrawals starting today at 09:00 UTC. This move aligns with preparations for Stellar’s much-anticipated Protocol 23 upgrade, a development aimed at revamping the network’s infrastructure and expanding its interoperability. The upgrade is poised to broaden Stellar’s utility for real-world assets, with approximately $460 million already circulating on the network. The synchronicity of price gains with network enhancements paints a vibrant picture of enterprise adoption.
“Protocol 23 is a critical juncture for Stellar,” remarks blockchain strategist Tomás Perez. “The enhancements could potentially unlock new avenues for real-world applications, providing a fertile ground for broader adoption.”
Market Dynamics and Future Projections
The market’s recent behavior suggests a strengthening corporate interest in XLM, with price support firmly anchored at $0.35 amid heightened selling pressure on September 1. The decisive market recovery saw robust accumulation between $0.36 and $0.37, as traders eyed the $0.37 resistance with anticipation. For a contrasting perspective on market dynamics, see XLM Declines 8% as Institutional Investors Retreat Amid Market Uncertainty.
Yet, the path forward is not without its hurdles. A breakout above the $0.37 resistance hinges on sustained volume validation, with trading momentum having accelerated during a brief window on September 2. The enhanced support structure around $0.36 adds another layer of intrigue, as traders prepare for potential movements in the days ahead.
The narrative remains dynamic, and while the recent rally has injected optimism, it also raises questions about whether the trend can maintain its momentum. As Stellar embarks on its Protocol 23 journey, market participants will be keenly watching for signs of continued institutional backing and the tangible impacts of the network upgrades.
In this ever-evolving market landscape, the convergence of price action and technological advancement may well dictate Stellar’s trajectory in the coming months—keeping traders and analysts alike on their toes.
Source
This article is based on: Stellar Lumens Gains 3% Ahead of Network Infrastructure Overhaul
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
