Why is Stellar's XLM up by over 50% this week?
XLM rose over 50% this week, outperforming a crypto market that fell about 5%, after DTCC said it will integrate its tokenized securities platform with Stellar, with launch targeted for the first half of 2027. The token jumped as high as $0.224, its highest since January, and trading volume increased sharply. The rally was amplified by a short squeeze: since May 28, short liquidations reached $12.41 million versus $6.82 million for longs, while open interest nearly doubled to $292.11 million. Negative funding showed bearish positioning stayed crowded, forcing shorts to cover as price rose. Despite the surge, XLM is now testing a major resistance zone around $0.198–$0.224, overlapping key weekly EMAs. Failure to break above could send price back to $0.112–$0.136, while a clean breakout may open a move toward $0.28–$0.30.
