Stellar (XLM) Faces 8% Drop Amid Weak August Historical Performance
Stellar's native cryptocurrency, XLM, recorded a 68% increase by July 31, reaching a market capitalization of $12.16 billion and becoming the 12th largest crypto asset. It outperformed major cryptocurrencies such as BTC and ETH during a rally.
As August begins, XLM has faced selling pressure, declining by 8% in the past 24 hours to $0.38 and down 14% over the last two weeks. Historically, August has been a challenging month for XLM, with losses recorded in all but two years (2017 and 2021).
XLM’s technical indicators show weakness, trading below its 20-day Exponential Moving Average (EMA) at $0.40, which signifies a bearish sentiment shift. Potential price movements include:
- A decline to $0.36 if demand continues to weaken.
- A break below $0.36 could push the price further down to $0.32.
- A recovery in buyer demand may allow XLM to rise above the 20-day EMA, possibly retesting $0.41.
- Analyst Ali Martinez suggested a potential breakout pattern could lead to a target of $0.80.
Stellar (XLM) Price Drop in August | Source: CryptoRank