Shiba Inu and Stellar (XLM): Is This the Best Time to Buy?

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Cryptocurrency markets continue to evolve, with investor attention increasingly split between meme-driven tokens and blockchain platforms offering real-world utility. Two assets currently capturing market interest are Shiba Inu (SHIB) and Stellar (XLM)—each representing opposite ends of the crypto spectrum, yet both showing promising momentum in 2025.

With Shiba Inu experiencing a dramatic surge in token burning and Stellar reinforcing its position through strategic partnerships and financial inclusion initiatives, now may be a pivotal moment for investors to assess their potential.

Stellar (XLM) Eyes $0.40 as Support Holds

Stellar (XLM) has entered a consolidation phase following a volatile run, currently trading at $0.38. This price level sits near key technical zones that could determine its next major move. The $0.35 mark—aligned with the 100-day Exponential Moving Average (EMA)—acts as critical support. Maintaining this level is essential for sustaining bullish momentum.

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Should buying pressure increase, XLM could test the psychological resistance at $0.40, followed by stronger barriers at $0.44 and $0.45. Historically, the $0.44–$0.45 range has served as a strong resistance zone, meaning a breakout above $0.40 could trigger renewed investor interest and volume-driven gains.

Technical indicators suggest XLM is currently oversold, increasing the likelihood of a bounce if demand returns. A successful push past $0.40 could open the path toward $0.47—the next major resistance level. Conversely, a drop below $0.35 would shift focus to the 200-day EMA at $0.33. A breakdown there might lead to a retest of $0.27, the pre-rally low from late 2024.

Bitcoin’s broader market performance will heavily influence XLM’s trajectory in the coming weeks, as altcoins often follow BTC’s lead during critical turning points.

Stellar’s Momentum: More Than Just Price

Beyond technicals, Stellar’s fundamental developments are strengthening investor confidence. In late 2024, the network partnered with the United Nations Development Programme (UNDP) to promote blockchain adoption in emerging economies—highlighting its mission of financial inclusion.

Additionally, collaboration with OpenZeppelin, a leader in smart contract security, aims to accelerate the development of advanced decentralized applications (dApps) on the Stellar network. These integrations enhance scalability, security, and developer accessibility—key ingredients for long-term ecosystem growth.

Such advancements have fueled positive community sentiment, with analysts projecting potential price targets of up to $0.79 by 2025, driven by institutional adoption and remittance use cases via partners like MoneyGram.

The Q4 2024 rally propelled XLM from $0.075 to an intraday high of $0.63, securing an annual gain of over 280% despite subsequent retracements. This resilience underscores strong underlying demand and growing recognition of Stellar’s role in cross-border payments and digital asset infrastructure.

Shiba Inu Burn Rate Surges—Supply Squeeze in Motion?

Shiba Inu (SHIB), one of the most recognized meme coins, is undergoing a transformation fueled by aggressive supply reduction. The launch of ShibTorch V2, a new token-burning mechanism, has driven a staggering 7,200% increase in burn rate, with over 1.1 billion SHIB tokens removed from circulation in a single day.

Since its inception in 2020, more than 410 trillion SHIB tokens have been burned—demonstrating a sustained community effort to reduce supply and enhance scarcity.

This surge in deflationary activity coincided with a 4% price increase, pushing SHIB to $0.0000196. On the four-hour chart, technical indicators reflect strengthening bullish momentum. The Relative Strength Index (RSI) sits near 58—indicating a neutral-to-bullish bias—while the MACD shows green histogram bars expanding, with the MACD line crossing above the signal line.

These signals suggest growing buyer conviction. If sustained demand continues, SHIB could突破 its immediate resistance at $0.0000197 and target $0.00003—a potential 52% upside from current levels.

However, maintaining support at $0.000018 remains crucial. A breakdown below $0.0000174 could trigger further selling pressure, especially in a risk-off market environment.

Market Sentiment: Consolidation Before the Next Move?

Market analysts observe that SHIB is currently consolidating within a tight range of $0.000018 to $0.000020. This period of sideways movement often precedes significant breakouts—especially when supported by fundamental catalysts like increased token burns.

For traders, this consolidation presents a strategic entry window. Holding above $0.000018 increases the probability of an upward move, while failure to maintain this floor could signal short-term weakness.

Similarly, for XLM traders, holding above $0.35 is vital for confirming bullish continuation. A breakout past $0.40 would validate upward momentum and potentially attract algorithmic and institutional flows.

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Real-World Utility: Stellar’s Edge in Financial Inclusion

While SHIB thrives on community-driven mechanics, Stellar shines through tangible use cases. One standout example involves Australian entrepreneur Zac Borrowdale, who uses Stellar’s blockchain to pay employees in Colombia via USDC.

Previously, Zac had to make risky trips to Medellín to distribute cash—a problem now solved through instant, low-cost digital settlements on the Stellar network.

This application exemplifies Decaf, a Stellar-powered solution enabling seamless cross-border payroll and remittances in underbanked regions. By bridging traditional finance with blockchain efficiency, Stellar is positioning itself as a go-to infrastructure for global financial inclusion.

As more institutions explore blockchain for payment modernization, Stellar’s scalable, low-fee network becomes increasingly relevant—potentially driving long-term demand and price appreciation.

Buy the Dip? Assessing the Opportunity

Both Shiba Inu and Stellar present compelling investment narratives in 2025—but with different drivers.

The decision to buy depends on risk tolerance and investment horizon:

Either way, timing and price levels matter. Entering near support zones—$0.35 for XLM and $0.000018 for SHIB—can improve risk-reward profiles.

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Frequently Asked Questions (FAQ)

Q: What is driving Shiba Inu’s price increase?
A: The primary catalyst is the 7,200% surge in SHIB’s burn rate due to ShibTorch V2, reducing supply and increasing scarcity—a bullish signal for price appreciation.

Q: Can Stellar (XLM) reach $1?
A: While not imminent, reaching $1 would require massive adoption and market cap expansion. More realistic near-term targets are $0.47–$0.79 by 2025 based on current momentum.

Q: Is XLM a good long-term investment?
A: Yes—XLM’s focus on financial inclusion, low transaction costs, and partnerships with organizations like UNDP give it strong long-term fundamentals.

Q: How does token burning affect SHIB’s value?
A: Burning removes tokens from circulation, reducing supply. If demand remains stable or grows, this scarcity can drive price increases over time.

Q: What are key support levels for XLM?
A: The $0.35 level (100-day EMA) is crucial. Below that, $0.33 (200-day EMA) becomes the next major support zone.

Q: Should I buy SHIB or XLM now?
A: Consider your strategy. XLM offers utility and stability; SHIB offers high-risk, high-reward potential. Evaluate current support levels and market conditions before deciding.

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