Key Insights:
- Ali Martinez sees a bear flag in XLM, warning of potential drop toward $0.378.
- Alimadao spots bullish patterns forming, targeting a breakout toward $0.57 and above.
- Stellar network activity climbs, with rising wallet numbers and a stablecoin supply reaching $222M.
Crypto analyst Ali Martinez shared a short-term price setup for Stellar (XLM), suggesting a bearish continuation pattern. On his chart, XLM appears to be forming a bear flag—a formation that usually follows a strong downward move and signals possible further losses if price breaks below support.
Notably, the structure begins with a steep drop from around $0.46 to $0.41, followed by a slow upward drift. XLM price was trading around $0.43 at press time, slightly up in the last 24 hours but down over the past week. If the support line fails to hold, the chart points to a possible move toward $0.378.
Other Analysts Point to Bullish Momentum
A different view comes from Alimadao, who shared a longer-term chart showing bullish formations. These include a flag and pole structure and an inverted head and shoulders—both often seen before upward moves.
The neckline of the inverted head and shoulders is marked around $0.446 to $0.450. Price is testing this area now. A clear breakout above could open room toward $0.57 or higher. The same chart shows price breaking out of a tight consolidation zone after a strong July rally, suggesting momentum may be building.
Network Activity on the Rise
On-chain data adds to the positive outlook. Over the past month, Stellar processed more than 81 million transactions—an 11% increase. The number of active wallets climbed nearly 50%, reaching close to half a million.
Stellar’s stablecoin supply has also grown, now standing at $222 million after a 10% jump. Much of the recent growth is tied to its role in low-cost payments and rising adoption in DeFi. The network’s total value locked has hit $150 million.
Moreover, developers are preparing for Protocol 23, scheduled to launch in September. The update will improve how the network handles smart contracts and will allow multiple transactions to run at the same time. Many traders are watching closely, as token prices often respond to large upgrades.
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Source: https://coincu.com/analysis/xlm-charts-send-mixed-signals/