Stellar Lumens Faces Price Decline, But Activity Soars
Stellar lumens (XLM) has seen a price drop in recent months, similar to other altcoins such as Cardano and Avalanche. As of Sunday, XLM was trading at $0.25,a critically important fall from its peak of $0.6380 last year.
Despite teh price dip, the Stellar network is showing strong 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 mainly due to the rise in USD Coin usage.
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 might be forming a falling wedge pattern, which often leads to a bullish breakout. Additionally, a double-bottom pattern at $0.2282 suggests a possible price rebound. If XLM stays above this point and avoids a death cross, it could see more gains.
