Stellar (XLM) Primed for Bullish Rebound as Paxos’ PYUSD NOC and Archax Deal Fuel Optimism

Stellar's network just got a double-shot of institutional adrenaline—and traders are taking notice.

Paxos drops the compliance mic

The stablecoin issuer's No Objection Letter for PYUSD on Stellar gives regulators' tacit approval—a rare win in crypto's compliance hunger games.

Archax goes all-in

London's FCA-approved digital securities exchange picking Stellar over legacy rails? That's Wall Street's version of a mic drop.

Market makers are already repositioning—liquidity pools show XLM bids stacking up faster than a hedge fund's management fees. The protocol's built-for-payments design suddenly looks prescient as real-world asset tokenization eats TradFi's lunch.

Just don't tell the Bitcoin maxis their 'number go up' thesis now has competition from actual utility.

Stellar collaborates with Archax to boost tokenization

Stellar announced a partnership between Archax and stellar Development Foundation (SDF), aiming to tokenize real-world assets and offer lower costs, global reach, and instant settlement. SDF will make a direct investment in the Archax Group; however, the amount of the investment is not disclosed in the announcement. 

With the on-chain development, a bridge between traditional finance and blockchain could catalyze demand for the Stellar blockchain and its native cross-border remittance token, XLM. 

Paxos steps closer to issuing PayPal’s PYUSD on the Stellar blockchain 

Paxos received a non-objecton certificate (NOC) from the New York State Department of Financial Services for the issuance of PYUSD stablecoin on the Stellar blockchain. The potential issuance WOULD boost liquidity and demand for Stellar, as the entry of a Fintech giant would create waves across the Web3 world. 

Stellar’s declining trend approaches crucial 50-day EMA support 

Stellar edges lower by 2% at press time on Tuesday, extending the 2.36% loss from Monday. The declining trend approaches the 50-day EMA at $0.3936 as overhead pressure persists. 

A clean push below this dynamic support could test the 100-day EMA at $0.3568, a 12% drop from the current market price of $0.4057. 

The momentum indicators hold a bearish bias for Stellar on the daily chart as the declining Moving Average Convergence Divergence (MACD) and its signal line approach the zero line. A drop below the zero line would signal further correction with increased bearish momentum. 

Additionally, the Relative Strength Index (RSI) is at 46 on the same chart, sloping downwards, indicating a loss in buying pressure. The RSI, distant from the overbought zone, suggests further room for correction before reaching saturation. 

XLM/USDT daily price chart.

On the contrary, based on the recent news, a bounce back from the 50-day EMA at $0.3936 could repeat the NEAR 30% surge as seen in early August. In such a case, XLM could reclaim the $0.5000 psychological mark, targeting $0.5112.