As the X-Ray upgrade goes live, see how XLM's price can react | Credit: TradingView
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Key Takeaways
Stellar’s X-Ray is now live on testnet, adding support for zero-knowledge proofs and configurable privacy.
XLM didn’t pump, but pulled back from $0.28 to ~$0.23, suggesting a short-term “sell the news” reaction.
If Supertrend support and positive AO hold, XLM can retest $0.28 and possibly higher targets soon.
Stellar (XLM) is making a major leap in privacy technology this new year as the network’s “X-Ray” upgrade, officially known as Protocol 25, is now live on Testnet
According to the project, the upgrade went live on Jan. 7. Despite the move, XLM’s price failed to register an increase.
Still, the altcoin’s market value has increased by 13% since the beginning of 2026. In this analysis, CCN reveals what the upgrade means for Stellar and what lies ahead for the XLM price.
What Is Stellar’s X-Ray Upgrade?
Stellar disclosed that the X-Ray upgrade went live yesterday via its official X account.
For those unfamiliar, the update introduces native support for zero-knowledge (ZK) cryptography, specifically through the BN254 elliptic curve and Poseidon hash functions.
By integrating these tools, Stellar enables developers to build confidential, compliance-driven applications without compromising the network’s core transparency.
Key Details of the Upgrade
Feature
Function
Benefit to Project
BN254 Support
Enables on-chain zk-SNARK proof verification.
Allows easy migration of ZK apps from Ethereum to Stellar.
Poseidon Hashing
Optimized cryptographic hashing for ZK circuits.
Reduces transaction costs and improves performance for private dApps.
Configurable Privacy
Selective disclosure of transaction data.
Attracts regulated institutions requiring both privacy and auditability.
Following the move, XLM’s price dropped to $0.23. This occurred after the altcoin’s recent breakout, which drove its price to $0.28 on Jan. 6.
Due to this, it appears that the development could not sustain the rally. Instead, it seems to have been a “sell the news” event.
However, the significant impact on XLM’s price could be decided on Jan. 22, when the mainnet vote takes place.
If the hype around privacy coins remains elevated in 2026, then XLM’s price could add to this year’s gains again. However, if it fades, that might not happen.
In that scenario, the altcoin could experience consolidation or an extended correction.
XLM Price Analysis
From a technical perspective, XLM has recently struggled to break the $0.25 resistance on the daily chart. That level has capped upside attempts and kept the rally from fully taking off.
Still, support signals are starting to line up. The Supertrend’s green line remains below the price, which suggests the broader trend is still constructive.
In other words, buyers have a support cushion that could help XLM build enough momentum to clear the overhead barrier, finally.
The Awesome Oscillator (AO) also strengthens that case. AO has flipped into positive territory, which signals that bullish momentum is returning and buyers are regaining control.
If these signals hold, XLM could push through resistance and rally toward $0.28, near the 0.382 Fibonacci level.
If momentum accelerates, a breakout could carry the price toward $0.33, which aligns with the 0.618 golden ratio.
However, the setup remains conditional. If selling pressure increases and XLM’s price fails to hold support, the bullish projection could break down. In that case, the price may revert to $0.20.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
