Stellar (XLM) Price Prediction: With the trend of PayPal stablecoin integration, a triangle breakout rebound is expected.

Today (7) in the Asian afternoon session, Stellar (XLM) rose nearly 1%, slightly increasing on top of Sunday's 5% gain. After rebounding from the support level on Wednesday, XLM is currently approaching the resistance trend line of a descending triangle pattern, driving its increase of nearly 12%. PayPal announced that PayPal USD (PYUSD) will land on the Stellar platform, and discussions on social media are heating up, further fueling market optimism, with the number of XLM open contracts surging by 10%. The technical outlook remains bullish, with positive factors continuously emerging.

PayPal plans to expand PYUSD to Stellar

On June 11, PayPal announced plans to connect its stablecoin PYUSD to the Stellar network. The integration of PYUSD with Stellar will allow the Stellar network to join the leading stablecoins USDT from Tether and USDC from Circle.

PayPal aims to enhance its cross-border remittance services and PayPal Finance (PayFi) infrastructure. With the plan awaiting approval from the New York State Department of Financial Services (NYDFS), discussions around potential integration are heating up.

The rebound on Sunday may be related to the market recovery or the increased likelihood of approvals this week. A recent tweet from StephisCrypto highlighted growing rumors that the rebound of XLM may continue.

XLM's double-digit growth in open contracts indicates a strengthening bullish sentiment

CoinGlass data shows that XLM open interest (OI) surged by 10% in the past 24 hours, reaching 181.73 million USD. The increase in open interest is related to the rise in buying activity, driving inflows into XLM derivatives, indicating an increase in trader confidence.

As the open positions increase, trading volume jumped 10% to 214.68 million USD, while the 0.99 long-short ratio indicates a slight bearish sentiment in the number of active positions.

XLM Price Analysis: Expected to Welcome a Triangle Breakout Rebound

FXStreet analyst Vishal Dixit stated that XLM will extend its upward trend to the key resistance trendline formed by connecting the highs of December 3rd and May 10th. Combined with the support level of 0.2190 USD (as shown in the green band in the figure below), XLM has formed a descending triangle shape.

If the daily closing price is above the trend line at the integer level of 0.2600 USD, a continuation of the breakout pump may occur until the June high of 0.2851 USD.

The Moving Average Convergence Divergence (MACD) indicator shows a series of rising green bars above the zero line, consistent with a bullish recovery trend. However, cautious investors may wait for the MACD and signal line to break through the zero line, indicating a trend reversal.

At the same time, the Relative Strength Index (RSI) is 52, breaking the midpoint, which is an early signal of a trend momentum shift.

However, the reversal of the resistance trendline could lead XLM to drop to the support level of 0.2190 USD, thereby prolonging the fluctuations within the triangular pattern.

(Source: Trading View)