Stellar Lumens (XLM) Breaks Through 200-Day Moving Average…Will It End the Long-Term Downtrend?

Stellar Lumens Rises 2.69%…Expectations for Protocol Upgrade and Real-World Asset Tokenization

▲ Stellar (Stellar, XLM)/AI Generated Image ©

Stellar Lumens (XLM) showed an above-market average surge, fueled by the Protocol 27 'Zipper' upgrade and growing expectations for Real-World Asset (RWA) tokenization. Technically, it also broke through the 200-day Simple Moving Average (SMA), drawing attention to the possibility of further rebound.

According to CoinMarketCap, a cryptocurrency market data aggregator, on August 3 (local time), Stellar Lumens recorded $0.175, up 2.69% over the past 24 hours. During the same period, the total cryptocurrency market capitalization rose by 1.4%, and Bitcoin (BTC) by 1.37%, indicating that XLM outperformed the market.

The key driver of the surge is positive development news from the Stellar ecosystem. On social media, news of the successful implementation of Protocol 27 'Zipper' upgrade, which lowers transaction costs, gained attention. Partnerships related to institutions like the Depository Trust & Clearing Corporation (DTCC) and the United Nations Development Programme (UNDP), along with news of expanding Real-World Asset tokenization, also raised expectations for increased institutional adoption of Stellar in the global financial sector.

The macroeconomic environment and the flow of funds into altcoins also supported the upward trend. As geopolitical tensions in the Middle East eased, risk appetite revived across the crypto market, and the Altcoin Season Index rose by 11.54% over 24 hours. This indicates that funds are circulating from Bitcoin to altcoins, including XLM.

Technically, XLM has broken above its key long-term trendline, the 200-day Simple Moving Average at $0.17413. If this price is converted into a new support level, there is a possibility of testing the recent short-term high of $0.177. A daily close above $0.177 could strengthen the uptrend, but a drop below $0.173, breaking out of the 50% Fibonacci retracement zone, could be interpreted as a sign that this breakout has failed.

While the short-term outlook is 'cautiously bullish,' XLM is still within a significant downtrend that has lasted for several months. The key factors are whether increased on-chain activity and new partnership announcements support expectations for expanded real-world utility, and whether the Altcoin Season Index maintains above 50. The US inflation data, to be released on August 12, is also considered a major variable that will determine the market's next direction.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*