Stellar’s XLM: A Flatline Romance with DeFi, But Hope Springs Eternal!

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Oh, what a difference a day doesn’t make! Stellar (XLM) has been as flat as a pancake over the past 24 hours, with a mere 0.3% movement. In the grand scheme of things, a 2.8% dip over the last week seems trivial when you consider it’s still managed to charm us with a 35% rise over the past three months. 🌟

Yet, amidst this longer uptrend, there’s a fly in the ointment: the lackluster performance of DeFi. How dull, darling!

DeFi’s Snore-fest Caps XLM’s Glamour

It appears that Stellar’s total value locked (TVL) in DeFi has been about as exciting as watching paint dry. As of July 31, the TVL was a modest $143.35 million, and by August 27, it had dipped ever so slightly to $142.48 million. Oh, the thrill!

In stark contrast, our more dynamic peers like Solana, BSC, and even Bitcoin-linked protocols have been putting on quite a show with their DeFi growth. It’s almost as if they’ve been attending a different party altogether. 🎉

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This lack of sparkle in Stellar’s DeFi layer has undoubtedly cast a shadow over its price. Nevertheless, the retail crowd hasn’t lost faith entirely. Buying activity has seen a slight uptick, suggesting that some are still willing to play the optimist’s game. 🍀

Net outflows have surged for five consecutive days, escalating from a modest $3.38 million on August 23 to a more robust $9.85 million on August 27-a near 200% increase. Impressive, isn’t it?

But wait, there’s a silver lining! Stellar’s Real World Asset (RWA) segment is experiencing a bit of a renaissance, with RWA valuations soaring by over 13% this month to a respectable $510.79 million. If Stellar can capitalize on this newfound interest, it might just give XLM the boost it needs to overcome its DeFi woes. Fingers crossed! ✨

RSI Floor: A Sign of Seller Struggle

Let’s not overlook the technical indicators, shall we? Stellar’s daily RSI has been testing the same floor (42.70) without breaking through, indicating that sellers haven’t quite taken the upper hand. How delightfully indecisive!

From August 19 to 21, the RSI even managed to form a small higher low while the price was busy printing a lower low. This divergence resulted in a sharp green candle on the chart, proving that buyers can still step in when the mood shifts. How thrilling!

The Relative Strength Index (RSI) is a momentum indicator that measures the strength of buying and selling pressure. For a truly bullish reversal, the RSI would need to form another higher low while the price continues to drift. This would signal that sellers are losing steam, paving the way for a potential XLM price lift.

XLM Price Action: The Key to the Kingdom

Alas, Stellar remains ensnared in a descending triangle pattern-a classic sign of bearish continuation. Unless key levels break, the bias leans towards further downside. It’s a bit of a cliffhanger, don’t you think?

On the downside, the $0.37 support level is crucial. A decisive move below this mark would confirm a breakdown and could lead to deeper losses. On the upside, the $0.39 resistance is the first obstacle. Breaking through the $0.42-0.43 zone, which has historically acted as both support and resistance, would open the gates for a more robust recovery. This would effectively invalidate the bearish pattern and bring a sigh of relief to many. 🙏

For now, XLM remains in a delicate balance, trading within a range. Will it break free and soar to new heights, or will it succumb to the bears? Only time will tell, my dear. Only time will tell. ⏳

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2025-08-27 20:43