In a move that has sent ripples through the crypto community, South Korea’s prominent exchange, Upbit, temporarily halted trading of Stellar’s XLM token on Tuesday. This pause comes as the Stellar network gears up for its much-anticipated Protocol 23 upgrade, aimed at enhancing scalability and boosting transaction speeds. Market players have been on high alert, as the upgrade, scheduled for September 3, prompts several exchanges to implement stability measures during this crucial transition period.
Protocol 23: A Game-Changer?
Market sentiment around Stellar’s upgrade is palpable. The XLM token, a staple in cross-border transactions, has been trading in a tight range of $0.36 to $0.37 in the 24 hours preceding the upgrade. This narrow trading band, coupled with volume spikes, suggests a brewing tug-of-war between bulls and bears. Despite persistent attempts to breach the $0.37 mark, selling pressure has kept a lid on prices, indicating a robust resistance at this level. However, the $0.36 support has remained firm, hinting at potential institutional accumulation. This mirrors recent trends where XLM Declines 8% as Institutional Investors Retreat Amid Market Uncertainty.
“XLM’s price action underscores its critical role in cross-border payments,” notes Clara Lee, a Seoul-based crypto analyst. “The institutional interest is evident, and many are watching for a definitive breakout.”
The final trading hour before Upbit’s suspension saw a surge in volatility, with XLM briefly flirting with the $0.37 resistance before retreating. This volatile dance highlights Stellar’s significance in the digital asset landscape, especially as interest in central bank digital currencies (CBDCs) and enterprise blockchain adoption continues to swell. Partnerships involving blockchain platforms like Hedera further amplify this momentum, as seen in HBAR Faces Heavy Selling as Traders Test Key Support Levels.
Eyes on the Horizon
As the dust settles from the Protocol 23 upgrade, traders are keenly observing two pivotal levels: the elusive $0.45 resistance—which XLM has unsuccessfully challenged four times since June—and the $0.30–$0.32 support zone, a potential accumulation sweet spot. The outcome of this upgrade could very well dictate Stellar’s next move: a breakthrough past its ceiling or a tactical retreat to bolster support at lower rungs.
“Stellar’s upgrade is more than just a technical enhancement,” remarks Jonas Kim, a digital currency strategist. “It’s a litmus test for its broader role in the evolving financial ecosystem.”
The crypto space is no stranger to rapid shifts, and Stellar’s journey is emblematic of the broader industry’s challenges and opportunities. With the upgrade in full swing, the market’s next steps remain uncertain. Will Stellar finally break its resistance shackles, or will it need to regroup and gather strength? The coming days will be telling.
In this ever-evolving landscape, the interplay of technical upgrades and market sentiment will continue to shape the trajectory of digital assets. As traders and investors keep a watchful eye on XLM, the larger narrative of blockchain’s integration into mainstream finance unfolds, raising questions about the future of digital currencies in a world that’s increasingly embracing technological advancements. The road ahead is anything but predictable, and that’s precisely what keeps industry insiders on their toes.
Source
This article is based on: Stellar Upgrade Triggers Trading Pauses on Major Exchanges, XLM Faces Resistance
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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.
