Stellar Lumens (XLM) Price Update

The XLM price has pulled back and dropped 20% from its highest point in July as the recent rally paused.

Summary

• XLM price has formed a bullish flag and a falling wedge on the daily chart.
• Stellar’s stablecoin assets are nearing the $200 million milestone.
• The total value locked in its decentralized finance apps has jumped to a record high.

As of Thursday, July 31, Stellar Lumens (XLM) traded at $0.4162, boasting a market capitalization of $13 billion and ranking it as the 13th-largest cryptocurrency.

Stellar’s Stablecoin Growth

Third-party data indicates that Stellar’s stablecoin growth is accelerating, bolstering its ambitions to disrupt the payment industry. According to Artemis, the circulating supply of stablecoins on Stellar increased by 13% in the last 30 days to over $189 million. This hints that the supply could exceed the $200 million milestone in August, especially following the signing of the GENIUS Act in the United States.

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The adjusted transaction volume rose 10% to $1.9 billion, continuing an upward trend seen in recent months. Additional data reveals that the total value locked on the Stellar network reached a record $145 million, a significant increase from a year-to-date low of $52 million, while previously, Stellar held less than $20 million in assets.

Stellar DeFi TVL

Stellar has also emerged as a notable player in real-world asset tokenization, with its tokenized assets increasing to over $441 million. Nansen’s data shows that Stellar’s network activity is on the rise, with active transactions nearing 20 million in the past 30 days, while the number of active addresses has surged by 60% to over 30,000.

XLM Price Technical Analysis

The daily chart indicates that the XLM token formed a double-bottom pattern at $0.2178, with a neckline at $0.3345, its highest point in May. It then surged to a peak of $0.5200 in July during the crypto bull run.

Since then, the XLM price has retreated, forming a falling wedge pattern, a well-known continuation signal. This pattern features two falling, converging trendlines, typically indicating a breakout near their intersection.

The Stellar price has also formed a rare bullish pennant pattern, highlighted by a vertical flagpole and a triangle. Moreover, it has established a golden cross pattern as the 50-day moving average crossed above the 200-day moving average.

Consequently, the token is likely to increase in August, with an initial target of $0.5200, representing a 26% rise from current levels. A break above that threshold could lead to further growth, possibly reaching $0.6385, which is 55% above the current prices.

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