Stellar (XLM) Price Eyes 20% Rally After Visa Integration News

Stellar’s native token XLM could be heading toward a 20% price rally following a major bullish breakout from a classic falling wedge pattern, just as global payments giant Visa announced its support for the Stellar blockchain.

XLM Breaks Out Amid Visa Integration

On Aug. 4, XLM broke above the upper trendline of a falling wedge pattern that had formed over the past three weeks. This breakout typically signals the end of a downtrend and the beginning of a strong upward move, especially when paired with bullish fundamentals.

The breakout follows Visa’s announcement that it has integrated Stellar’s distributed ledger technology (DLT) into its stablecoin settlement network.

Notably, Stellar is the only non-proof-of-stake (non-PoS) chain currently supported by Visa, highlighting its unique consensus mechanism as a scalable and energy-efficient alternative.

The partnership is expected to boost XLM’s real-world utility, particularly in cross-border remittances and stablecoin settlements — areas where Stellar has historically been active.

50-EMA Support Holds, RSI Strengthens

From a technical standpoint, the breakout is gaining momentum as XLM holds above both its 50-period (red wave) and 200-period (blue wave) exponential moving averages on the four-hour chart.

These moving averages, located at $0.4069 and $0.3868 respectively, have flipped into support after a brief period of price compression.

The relative strength index (RSI) has also surged to 59.27, suggesting growing bullish momentum but still leaving room for further upside before reaching overbought levels.

If the falling wedge pattern plays out in full, XLM could rise toward its next major resistance near $0.4969, a level marked by a previous swing high in mid-July. This would imply a 20% price increase from current levels around $0.4135.

The bullish outlook would likely remain valid as long as XLM holds above the breakout zone and its key moving averages.