Stellar Lumens (XLM) surges 97% since July to $0.40, driven by 100M+ transactions and Protocol 23 upgrade, with analysts eyeing $0.70 breakout.
Technical analysis of the XLM price
On Saturday, August 16, the Stellar Lumens token was trading at $0.43, resulting in a market capitalization of over $13 billion. It has increased by 97% from its lowest point in July, and technical indicators and an imminent upgrade indicate that additional gains are imminent.
Stellar price has established numerous bullish patterns, as evidenced by the three-day chart. It established a double-bottom pattern at $0.2178, its lowest point in April and June, and a neckline at $0.3350. More advantages are frequently achieved through a double-bottom pattern.
The XLM price currently exhibits a bullish pennant pattern, which is composed of a symmetrical triangle and a vertical line. The two lines of this triangle are on the brink of convergence, and a robust outburst will follow.
The initial step in estimating the price target of a bullish pennant is to measure the height of the flagpole, which is approximately 57%. The target price of $0.7270, over 50% higher than the current level, is determined by measuring the same distance from the breakout point.
The price will affirm these gains when it surpasses the critical resistance level at $0.6356, its highest point in November of the previous year. The favorable XLM price forecast will be rendered invalid by a decline below the support level of $0.3350.
Stellar Lumens’ primary drivers
The price of XLM is expected to increase in the near term due to three significant catalysts. The network is expanding its market share in lending, staking, and lending sectors, as evidenced by the increasing volume of smart contract transactions.
The total value of decentralized finance has reached a record high of $150 million, as these transactions recently surpassed the 100 million milestone.
According to Nansen data, Stellar’s transactions have increased by 11% in the past 30 days to 81.85 million. Additionally, active addresses have increased by 49% to 493,774.
It is also achieving its objective of simplifying payments, another favorable catalyst for the XLM price. In the past 30 days, the stablecoin supply has increased by 10%, reaching a record high of $222 million. This is significant because Stellar aims to revolutionize the payment industry by decreasing transaction costs.
Third, Stellar is currently developing the Protocol 23 enhancement, which is anticipated to be implemented in September. The primary features of the system will be the optimization of Soroban transactions and the introduction of parallel transaction execution. Tokens frequently advance in anticipation of a substantial enhancement.