XLM price remains capped under resistance amid August’s decline
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Key Takeaways
XLM coin price has dropped 10% in August and trades inside a descending channel.
Despite th setup, Stellar’s fundamentals look stronger, with stablecoin adoption.
If bearish momentum persists, XLM’s price risks sliding to $0.30 or as low as $0.22
The late-summer chill has caught up with Stellar (XLM). Over the past 30 days, XLM’s price has fallen by 10% as August winds down.
While some altcoins might rebound from that point, XLM does not seem likely to end the month on a high note. Here is why.
Stellar Coins in Tight Range
On the 4-hour chart, XLM’s price trades within a descending channel, reflecting sustained downward pressure.
Within this setup, the Bull Bear Power (BBP) has slipped into negative territory, signaling that sellers currently have the upper hand and weakening the chances of an immediate recovery.
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Despite the bearish setup, the Money Flow Index (MFI) has climbed above the 50 midpoint. However, this rise reflects increasing selling pressure instead of signaling strength, suggesting that more capital is flowing out of XLM than coming in.
If this trend holds, it could limit any recovery attempts and keep the token under downward pressure. Should this trend remain the same, XLM’s price risk drops below the support at $0.38.
By the look of things, XLM’s market value could fail to surge past resistance. If that were to happen, the altcoin could also drop below the $0.32 underlying support
However, on the positive side, Stellar seems to grow fundamentally, especially in the stablecoin market.
“According to a Goldman Sachs, the report, the stablecoin market could reach trillions, with payments as the largest growth opportunity. Stellar is already scaling that market, with 4.2B+ in RWA payments and TVL climbing almost 200% from Q1 to date ($50M → $144M),” It disclosed.
XLM Price Prediction: No Breakout
From a short-term perspective, the daily chart confirms that XLM’s price is moving within a falling channel. At the same time, the Chaikin Money Flow (CMF) has slipped below the zero line, signaling capital outflows and weakening demand for the token.
If this remains the same, XLM could drop to $0.30. If the market enters a bear cycle, the altcoin might decline to $0.22.
On the contrary, the bearish setup could overturn if buying pressure strengthens. In that case, XLM may break above the upper trendline of its descending triangle, signaling a potential shift in momentum.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
