XLM fell 8% after July's rally, facing bearish pressure at the start of August.
Historical data shows August often delivers weak performance for Stellar’s price.
XLM could drop to $0.32 or rebound above $0.41 if demand returns.
Stellar’s rally in July wasn’t just exciting—it was explosive. The XLM token surged by a jaw-dropping 68%, outperforming even giants like Bitcoin and Ethereum. That massive move pushed Stellar into the top 15 cryptocurrencies, closing July with a $12.16 billion market cap. The sudden momentum caught the market off guard, lighting a spark among investors. But as August begins, that flame is flickering. The price has stumbled, and the mood among traders is shifting quickly. Could August reverse the trend—or will the rally unravel?
https://twitter.com/ali_charts/status/1950924409876939257?t=MAvEHiplT4BdTesbF9Fkog&s=19 August Brings Pressure as Traders Turn Cautious
XLM has taken a hit. The token is down 8% in the last 24 hours, now trading near $0.38. Over the last two weeks, it has slipped 14%, revealing sustained selling pressure. The excitement from July seems to be fading. What once looked like unstoppable momentum now feels like uncertainty creeping in. This shift is also visible in the charts. The token recently broke below its 20-day Exponential Moving Average (EMA), which hovers around $0.40. That line, which once offered support, now acts as resistance.
This is a classic signal that short-term market sentiment has turned bearish. As prices dip further below this line, confidence continues to slip. Historical data doesn’t offer much comfort either. August has traditionally been a tough month for Stellar. Since 2017, XLM has only closed August in the green twice—2017 and 2021. Every other year saw losses. That history now looms large over investors hoping for another breakout.
Can Bulls Regain Control and Spark a Rebound?
If bearish pressure continues, XLM may revisit the $0.36 support zone. A break below that could open the door to deeper losses, possibly pushing the token down to $0.32. That would erase nearly half of July’s gains, shaking investor confidence even further. Despite the growing pessimism, a glimmer of hope remains.
If demand picks up and accumulation resumes, XLM might break above the 20-day EMA once more. That could trigger a shift in momentum and rebuild short-term optimism. A successful push above $0.40 might set the stage for another attempt to retest $0.41.Crypto analyst Ali Martinez has pointed to a possible flag-and-pole pattern forming on the XLM chart. If that technical setup plays out, XLM could be gearing up for another major rally.
While bold, crypto markets are known for unpredictable comebacks. The key lies in volume and sentiment. If buyers return in force, XLM could defy expectations. Until then, traders must stay nimble and prepared for either direction. The market may be quiet now, but the next big move could be just around the corner.
