Stellar's Breakout Bid Falters on Clarity Act Optimism Wane

Stellar's recent price action has been stuck in a narrow range, with its XLM token struggling to clear resistance near $0.195.

This is despite what analysts described as a reasonably strong move and rising trading volume the previous day.

The main catalyst behind Stellar's recent momentum was the proposed Clarity Act, but changing expectations around Senate Democrats have reduced the chance of an imminent breakthrough.

According to Cilinix Crypto's latest update, Stellar's long-term fundamentals remain encouraging, with network TVL and stablecoin capitalization rising significantly this year.

Total value locked on the network has increased from $160 million at the start of the year to about $250 million, while Stellar's stablecoin market capitalization expanded from around $200 million to nearly $1 billion.