The market analysis of Stellar (XLM) has revealed mixed signals, with analysts presenting possible declines and growth. Additionally, the rising activity in the network is attracting attention among watchers.
Bear Flag on XLM Chart
Analyst Ali Martinez highlighted the formation of a bear flag in the Stellar (XLM) chart. This pattern usually indicates potential further declines following a significant drop. According to his data, XLM fell from around $0.46 to $0.41, followed by a slow upward drift. At the time of publication, the price was at about $0.43, slightly higher compared to the previous 24 hours but down over the past week. If the support line fails to hold, a potential move toward $0.378 is forecasted.
Bullish Forecasts from Other Analysts
Another analyst, Alimadao, pointed out bullish patterns in his long-term chart, including a flag and pole structure and an inverted head and shoulders. The neckline of these patterns is marked around $0.446 to $0.450. The current price is testing this area, and a clear breakout above could lead to a rise toward $0.57 or higher. The same chart shows price breaking out of tight consolidation zones, suggesting momentum may be building.
Rising Activity on Stellar Network
On-chain data indicates that Stellar processed over 81 million transactions in the past month, an 11% increase compared to the previous period. The number of active wallets has risen nearly 50%, reaching close to half a million. The supply of stablecoins has grown to $222 million after a 10% jump, attributed to its role in low-cost payments and rising adoption in DeFi. The total value locked in the network has hit $150 million. Additionally, developers are preparing for Protocol 23, scheduled to launch in September, aimed at enhancing how the network handles smart contracts.
Thus, analysts provide mixed forecasts regarding the future of Stellar (XLM), while the rising activity in the network may support an optimistic sentiment among users and investors.
