XLM Surges 68% in July, Will August Bring Another Groundbreaking Performance?
Stellar Lumens (XLM), the digital token associated with the Stellar network, is currently experiencing a period of uncertainty as prices dip further below the 20-day Exponential Moving Average (EMA), a trend that suggests a shift in market sentiment towards bearishness.
Historically, August has been a challenging month for XLM, with the token only closing August in the green twice since 2017. This year, the token has followed a similar pattern, dipping 14% over the last two weeks after an exceptional 68% rally in July. This decline has seen XLM fall below its 20-day EMA, a significant support level that now acts as resistance.
A Complex Outlook for XLM in August
The current bearish phase for XLM could potentially be offset by technical bullish setups and fundamental growth factors. For instance, analysts have pointed to a possible flag-and-pole pattern forming on the XLM chart, suggesting a potential major rally could be on the horizon. However, if bearish pressure continues, XLM may revisit the $0.36 support zone. A break below this level could open the door to deeper losses, possibly pushing the token down to $0.32.
On-chain activity supports this complex outlook. Despite the bearish trend, there has been a significant increase in transaction volume (+14%) and active addresses (+81%) as reported in early August, reflecting growing adoption and engagement on the Stellar network.
Staying Nimble in the Market
Until a clear direction emerges, traders must stay nimble and prepared for either direction. If buyers return in force, XLM could defy expectations and break above the 20-day EMA once more. If this happens, another attempt to retest the $0.41 level might be on the cards. However, if the bearish trend continues, XLM may struggle to find support and could potentially slip further.
As of now, the XLM token is trading near $0.38. The market may be quiet now, but the next big move could be just around the corner. It's important for investors and traders to closely monitor market trends and sentiment indicators to make informed decisions.
[1] CoinMarketCap (2025). Stellar Lumens (XLM) Historical Data. [Online]. Available: https://coinmarketcap.com/currencies/stellar-lumens/historical-data/
[2] Investopedia (2025). Stellar Lumens (XLM) Price Prediction. [Online]. Available: https://www.investopedia.com/terms/x/xlm.asp
[3] CryptoSlate (2025). Stellar Lumens (XLM) Analysis: Bullish Flag Forming on the Chart. [Online]. Available: https://cryptoslate.com/stellar-lumens-xlm-analysis-bullish-flag-forming-on-the-chart/
[4] NewsBTC (2025). Stellar Lumens (XLM) Price Prediction: Bullish Setups and Fundamental Growth Factors Suggest Complex Outlook. [Online]. Available: https://www.newsbtc.com/news/2025/08/05/stellar-lumens-xlm-price-prediction-bullish-setups-and-fundamental-growth-factors-suggest-complex-outlook/
[1] The cryptocurrency market's uncertainty regarding Stellar Lumens (XLM) could potentially find resolution through technical bullish setups or fundamental growth factors.
[2] Amidst a bearish trend, the technology underpinning the Stellar network, despite showing increased transaction volume and active addresses, might not be enough to prevent further declines in XLM's crypto finance value if the bearish pressure continues.
