Stellar XLM Forms Bullish Falling Wedge as Transactions Jump 14% and Price Rises 7%

Stellar Lumens (XLM) has recently drawn attention as its price forms a rare falling wedge pattern, a technical signal often linked to bullish reversals. This development coincides with a notable 14% rise in Stellar transactions over the past 30 days, reaching 81.2 million, placing the network among the top eight most active blockchains in the crypto industry. The growing on-chain activity, combined with a 21% increase in stablecoin supply to $209 million, indicates a strengthening use case for Stellar’s cross-border payment infrastructure [1].

Active addresses on the Stellar network have surged by 81% to 515,000, while network fees have jumped by 120% to $201,000, reflecting increased usage and adoption. The network's momentum is further supported by the upcoming Protocol 23 upgrade, scheduled for a mainnet vote on September 3. Key testnet milestones, including a reset on August 14, will prepare the ecosystem for enhanced performance and scalability [1].

On the technical front, XLM has formed a double-bottom at $0.2177 and a golden cross on July 15, where the 50-day and 200-day moving averages intersected—commonly viewed as a bullish indicator. The most significant pattern, however, is the falling wedge, which forms when two descending trendlines converge. Analysts suggest that a breakout above the wedge could lead to a move toward $0.5183, a level representing a 31% gain from the current price. A sustained move beyond that may target $0.6365, a 61% increase [3].

Bullish signs are further reinforced by a recent 7% price increase within a 24-hour period, signaling renewed buying interest and a potential shift in short-term sentiment [2]. The rising number of active users and the increased velocity of transactions suggest that Stellar’s ecosystem is gaining traction, especially with its stablecoin network expanding in both value and user base [3].

While the current trajectory appears promising, analysts caution that a breakdown below the double-bottom neckline at $0.3351 would signal a loss of bullish momentum. In contrast, a confirmation above $0.5183 could trigger a more aggressive rally, potentially leading to $0.6357. Some projections suggest that if XLM follows an Elliott Wave pattern and forms a third wave, further gains may be on the horizon [3].

The broader crypto market has also seen a 75% surge in Stellar’s price during July 2025, rising from $0.23 to $0.51. Although this level has yet to be retested, the formation of a bullish triangle pattern implies that a new upward move could target $1.51 if key resistance levels are cleared [4].

Collectively, these technical and on-chain developments paint a strong case for XLM in the short to medium term. As the Stellar Protocol prepares for its next major upgrade and on-chain activity continues to rise, the asset appears well-positioned to benefit from the next phase of the broader crypto market cycle, especially as leading assets like Bitcoin show signs of recovery [3].

Source:

[1] https://crypto.news/xlm-price-forms-a-rare-pattern-as-stellar-transactions-jump/

[2] https://u.today/stellar-xlm-bulls-in-action-as-price-suddenly-jumps-7

[3] https://www.banklesstimes.com/articles/2025/08/04/xlm-price-prediction-the-bullish-case-for-the-xrp-cousin/

[4] https://www.gate.io/blog/10577/triangle-breakout-imminent-xlm-bullish-triangle-signals-possible-surge-to-dollar151