XLM Price Prediction: 3 Key Reasons Why Stellar’s Price Crash May Be Temporary
The post XLM Price Prediction: 3 Key Reasons Why Stellar’s Price Crash May Be Temporary appeared on BitcoinEthereumNews.com.
Profit-taking dragged XLM down over 23%, but it bounced back slightly near $0.437. Stablecoin growth and technical signals point to a possible rebound despite recent price weakness. Stellar’s native token, XLM, saw a sharp price drop of over 23% from its monthly peak of $0.52, falling to a low of $0.40 on July 25. The fall was largely triggered by a wave of profit-taking among investors, who cashed out after the strong rally earlier in the month. The dip was not isolated, as XRP from Ripple also faced similar price pressure. XLM later recovered slightly and was trading at $0.437 at the time of this report. While the correction appears steep, data across multiple metrics shows the drop may not last long. Transaction volumes, network activity, and increased adoption of stablecoins all suggest there is enough momentum to push the token back up. Technical indicators also support this view, with the chart showing signs of a likely reversal. XLM’s trading activity surged in July, pushing it past major players like Ethereum. Over the seven days leading up to July 24, transactions on the Stellar network jumped 22%, reaching 2.93 million. This figure is significant considering Ethereum processed 10 million over the same period. Active wallet addresses also increased by 16%, totaling 208,000. Meanwhile, network fees climbed 99% to $73,000, which is especially notable given that Stellar’s fees are typically low. Stablecoin Expansion Pushes XLM’s Usage Up A key factor behind the market’s confidence in Stellar lies in the rise of stablecoin activity on the platform. Stellar’s stablecoin supply has grown by 15% in the last 30 days, totaling $184 million. During the same period, transaction volume surged by 40% to $1.8 billion, and stablecoin wallet addresses grew 33%, reaching 260,000. The recent signing of the GENIUS Act by former President…
