Stellar's Chart Seeks $0.30 as $3.5B RWA Collateral Boosts Bullish Sentiment

Stellar Lumens (XLM) is forming an Inverse Head 'n' Shoulders pattern on its daily price charts. This technical indicator suggests that if XLM breaks above the neckline around $0.22, it could reach quarterly highs of roughly $0.30.

The head of this pattern is near $0.15 and the shoulders are in the $0.16, $0.17 zone. To confirm a bullish setup, Stellar bulls need to see a breakout above the neckline. If XLM falls below $0.15, it could destroy this potential breakout.

The derivatives markets have shifted towards a more bullish stance, with a long-to-short ratio of 1.0492 in favor of buyers. The Futures trading volume has also been growing steadily, exceeding spot market demand on most days in September so far.

There are several catalysts supporting this shift. Stellar's XLM Network is being used to tokenize Real World Assets (RWA), with a Total Value Locked (TVL) of over $3.5 billion. This stash of RWA is becoming productive collateral via Templar, according to analyst Chart Nerd.

The bigger story is the increasing adoption of government debt on-chain. Etherfuse Stablebonds are bringing Mexican CETES and Brazilian Tesouro bonds onto the blockchain. Spiko's euro-denominated T-bill fund has nearly doubled in market cap this year, reaching $970 million. The United States bond allocation is also significant, with around $1.1 billion allocated.