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.
Stellar Lumens (XLM) traded at $0.4162 on Thursday, July 31, giving it a market capitalization of $13 billion and ranking it as the 13th-largest cryptocurrency.
Stellar’s stablecoin growth is continuing
Third-party data shows that Stellar’s stablecoin growth is accelerating, supporting its goal of disrupting the payment industry.
According to Artemis, the circulating supply of stablecoins on Stellar jumped 13% in the last 30 days to over $189 million. This suggests the supply could surpass the $200 million milestone in August, especially after the signing of the GENIUS Act in the United States.
The adjusted transaction volume rose 10% to $1.9 billion, continuing an upward trend that began a few months ago.
Additional data shows that the total value locked on the Stellar network climbed to a record $145 million, up from a year-to-date low of $52 million. Previously, Stellar’s ecosystem held less than $20 million in assets.
Stellar has also emerged as a notable player in real-world asset tokenization, with its tokenized assets rising to over $441 million.
Nansen data indicates that Stellar’s network activity is growing. Active transactions remained near 20 million in the last 30 days, while the number of active addresses rose 60% to over 30,000.
XLM price technical analysis
The daily chart shows 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 high of $0.5200 in July during the crypto bull run.
XLM price has since pulled back and formed a falling wedge pattern, a popular continuation signal. This pattern consists of two falling, converging trendlines, with a breakout typically occurring near their intersection.
Stellar price has also formed a rare bullish pennant pattern, featuring a vertical flagpole and a triangle. Additionally, it has formed a golden cross pattern as the 50-day moving average crossed above the 200-day moving average.
Therefore, the token will likely climb higher in August, with an initial target of $0.5200, up 26% from its current level. A break above that level could point to further gains, potentially reaching $0.6385, which is 55% above current prices.
