The price of Stellar Lumens has experienced a decline over the past few months, reflecting the trends seen with other altcoins such as Cardano and Avalanche.
On Sunday, Stellar (XLM) was trading at a critical support level of $0.25, significantly lower than its peak of $0.6380 from the previous year.
On-chain statistics indicate that the Stellar ecosystem is performing relatively well. Data from Nansen reveals that transactions have surged by 24% over the past week, reaching 21.5 million, and have increased nearly 30% over the last month to 70.5 million, making Stellar one of the most active networks in the crypto space.
The number of active addresses within the Stellar ecosystem has seen a notable increase in recent days, rising by 15% in the past week to 162,947. This growth has also resulted in a significant 105% jump in weekly transaction fees.
Additional insights from DeFi Llama highlight that the total amount of stablecoins within the Stellar ecosystem has reached an all-time high, with stablecoins—predominantly USD Coin—now approaching $300 million. This marks a substantial rise from the $104 million in stablecoins reported last November.
Stellar Price Overview
The daily chart indicates that the XLM price has significantly decreased from its peak in November last year. It has fallen below the 61.8% Fibonacci Retracement level.
Moreover, the token is on the verge of forming a death cross pattern, as the 50-day and 200-day moving averages are about to converge. Such a crossover could lead to additional downward momentum.
On a brighter note, there are indications that the token is slowly developing a falling wedge pattern, characterized by two descending and converging trend lines, which typically results in a bullish breakout. A recent example of this occurred with the Pi Network price, which saw a rebound on Saturday.
Furthermore, there are signs that the XLM price is gradually forming a double-bottom pattern at $0.2282, with a neckline at $0.30. This pattern is considered another strongly bullish signal.
As a result, it is likely that the Stellar price will rebound if it maintains its position above the double-bottom level of $0.2282 and avoids forming a death cross. Additional gains will be confirmed if it breaks above the upper boundary of the wedge pattern.