A fresh analysis comparing Stellar ($XLM ) with the M2 global liquidity index reveals a widening bullish divergence, hinting that XLM may be poised for a rally as worldwide liquidity expansion picks up steam.
A recent chart analysis has drawn attention to an intriguing gap between Stellar's price action and global liquidity trends. While the M2 money supply has climbed sharply, XLM remains relatively flat around $0.33. This divergence could signal that the altcoin is lagging behind macro conditions that typically fuel crypto rallies.
๐Chart Analysis: Liquidity Climbs While XLM Holds Steady
Trader Bull Bear Spot recently highlighted a compelling pattern on XLM's chart. The visualization shows Stellar's price moving sideways between $0.30 and $0.40, while the M2 liquidity metric has surged from below $0.60 to above $1.40. This growing gap suggests that expanding global liquidity hasn't yet translated into XLM's market value.
Historically, these types of lags don't last forever, especially for assets sensitive to liquidity shifts. Stellar, designed for cross-border payments, tends to benefit when money supply expands, as fresh liquidity often flows into utility-focused crypto networks. Right now, XLM appears to be consolidating near $0.33, potentially forming an accumulation base. A clean break above $0.40 could trigger renewed interest and set the stage for a move toward $0.50โ$0.60.
๐Why Liquidity Matters for Stellar
The M2 money supply measures circulating cash and easily accessible deposits across the global economy. When M2 rises, it usually means financial conditions are loosening, which tends to boost inflows into digital assets. In past cycles, Stellar showed strong correlation with money supply growth.
The current setup hints at a similar scenario unfolding: liquidity has already expanded significantly, but XLM hasn't caught up yet. If easing conditions continue, the coin could see a sharp catch-up move. Stellar's push into real-world asset tokenization and international remittances also fits well with an environment where abundant liquidity drives cross-border capital flows.
๐Sentiment and Possible Triggers
Despite the bullish macro backdrop, short-term sentiment around XLM remains neutral. Market watchers are eyeing several potential catalysts: a broader altcoin rotation fueled by fresh liquidity, upcoming Stellar network upgrades or partnerships, and central bank policy shifts that could accelerate M2 growth further. If these pieces fall into place, XLM might quickly narrow its performance gap with the liquidity curve, reinforcing the idea that macro liquidity remains a key driver for crypto assets.
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