Stellar Lumens Faces Price Dip, But Activity Soars
stellar Lumens (XLM) has seen a price decline in recent months, similar to other altcoins such as Cardano and avalanche. As of Sunday,XLM was trading at $0.25, a significant drop from its peak of $0.6380 last year.
Despite the price dip, the Stellar network is showing strong on-chain activity. According to Nansen data, transactions have surged by 24% in the past week, reaching 21.5 million. Over the last month, they’ve increased by nearly 30%, totaling 70.5 million. This makes Stellar one of the most active crypto chains.
the number of active addresses on Stellar has also risen by 15% in the last seven days, hitting 162,947. This growth has led to a 105% increase in weekly transaction fees.
DeFi Llama data reveals that stablecoins on stellar have reached a record high of nearly $300 million, up from $104 million in november. This growth is primarily driven by USD Coin.
However, the XLM price chart shows a sharp decline from its November high. It has fallen below the 61.8% Fibonacci Retracement level. A potential death cross pattern could lead to further price drops.
On the shining side, XLM may be forming a falling wedge pattern, which often leads to a bullish breakout. Additionally, a double-bottom pattern at $0.2282 suggests a possible rebound if the price stays above this level.
For Stellar to see more gains, it needs to avoid the death cross and rise above the upper side of the wedge pattern.
