Stellar (XLM) rose again above $0.16, signaling a moderate recovery after several weeks of consolidation. The rebound comes as investors remain cautious, with renewed discussions around decentralization standards and real-world blockchain adoption weighing on investor sentiment.

Related reading: Is an XRP rally coming? The analyst predicts a recovery in March and April if this level is broken

Aggregated data shows that XLM is trading near $0.16 and its market capitalization is above $5.4 billion, reflecting solid demand in the long-term support range of $0.13 to $0.16. Market observers note that this zone has historically acted as an accumulation area during previous market cycles.

XLM's price trends to the downside on the daily chart. Source: XLMUSD on Tradingview 

Stellar Technical Repair (XLM) is met with a cautious attitude

Despite the recent rebound, derivatives positioning suggests investors remain cautious. Metrics tracked by Coin indicate a decline in open interest with rising brief positions, suggesting that many market participants continue to expect narrow upside in the near future.

Technically, XLM continues to trade below key moving averages centered around $0.18-0.21, keeping the broader trend under pressure. Analysts see a sustained move above $0.18 as an early signal of structural improvement, while failure to hold support at $0.15 could reopen downside risks towards $0.14.

Some market analysts describe the current phase as a positioning period rather than a confirmed breakout. Momentum indicators have begun to stabilize, but confirmation of a long-term trend reversal would likely require acceptance above the $0.30 level, an area widely viewed as a structural reversal.

The adoption narrative supports a long-term perspective

Beyond price action, Stellar’s investment thesis continues to focus on cross-border payments and tokenized assets. The network’s partnerships with companies including MoneyGram and Circle have expanded its role in remittance and stablecoin settlement infrastructure.

According to reports from Star Development Foundationnetwork activity and account numbers continue to grow, especially in emerging markets where payment costs remain high.

Analysts say expanding the utilize of stablecoins and experimenting with institutional settlements could strengthen long-term utility. Some forecasts suggest that regaining higher resistance zones could pave the way for much higher valuations by 2026.

The decentralization debate adds a up-to-date level of control

At the same time, Stellar has become part of a broader ideological debate in the cryptocurrency industry. Justin Bonsfounder of Cyber ​​Capital, recently criticized several payment-oriented blockchains, arguing that networks that rely on select validator structures risk violating decentralization principles.

Related Reading: Bitcoin Price Rises 8% – Key Factors Behind Recovery Towards $70,000

Proponents counter that enterprise-friendly governance models prioritize compliance, speed and predictable settlements, trade-offs that may be attractive to financial institutions implementing blockchain technology.

Cover image from ChatGPT, XLMUSD chart on Tradingview