Stellar (XLM) faces a crossroads as price charts display conflicting signals. While some analysts predict a potential drop toward $0.378 due to a bearish flag formation, others anticipate a bullish breakout towards $0.57 and beyond. 💰 📈 🐻 🐂
Analyst Ali Martinez highlights a bearish setup on XLM’s price chart, suggesting the continuation of a downward trend. His analysis identifies a potential bear flag pattern, which typically follows sharp downward moves and signals further losses if support is breached. The current price sits around $0.43, down from earlier highs, while analysts warn of a possible drop towards $0.378.
However, another expert, Alimadao, paints a more optimistic picture.
Alimadao’s analysis highlights bullish potential for XLM. His longer-term charts show formations like a flag and pole structure and an inverted head and shoulders pattern, both commonly associated with upward price movements. This suggests a potential breakout above the $0.446-$0.450 support zone.
Network Activity Indicates Growth:
On-chain data adds fuel to this mixed outlook. Stellar has witnessed a surge in transaction volume over the past month, processing more than 81 million transactions, an increase of 11%. Active wallets have also jumped nearly 50%, nearing half a million. The network’s stablecoin supply is steadily growing, reaching $222 million, largely driven by its role in low-cost payments and rising adoption within the DeFi space.
Developers are preparing for Protocol 23, scheduled for September launch. This update promises improved smart contract functionality and multi-transaction processing, which could significantly impact XLM’s price movement.