Stellar price prediction: Is the XLM token a buy in August?
- Stellar Lumens price rose by 50% from its lowest level in July.
- The price action was mostly because of the rumoured acquisition of MoneyGram.
- We explain why XLM is the coin to watch in August.
The Stellar Lumens (XLM/USD) price had a strong month in July. The coin initially declined by more than 27% and moved to the monthly low of $0.1993. The coin then jumped by more than 50% to a monthly high of $0.300.
Stellar is the coin to watch in August
The XLM price will be in the spotlight in August as investors continue focusing on rumours that the Stellar Development Foundation (SDF) was negotiating a deal to acquire MoneyGram. MoneyGram has a market capitalization of more than $1 billion.
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Therefore, if the deal happens, the firm will be acquired for more than $1.3 billion. As such, this will make it the biggest acquisition by a cryptocurrency company. Other recent big deals include the Coinbase direct listing and the recent $900 million capital raise by FTX.
As such, the XLM token will be the coin to watch in August because investors and traders will continue focusing on the deal. If it happens, there is a possibility that the Stellar price will bounce back. This is because the firm will take advantage of MoneyGram’s global network to expand its business. MoneyGram has operations in almost all countries.
Meanwhile, Stellar recently published its second-quarter review. The review highlighted on Tribal Credit and Airtm. Tribal Credit received $18 million while Airtm received $15 million. The goal was to fund fintech companies that are working using Stellar’s products.
At the same time, transactions in the network kept rising. The total number of Stellar accounts rose by 20% while the amount of money moving in the network rose by 160%. The average DEX volume rose by 27% while the number of total operations increased by 173%.
In August, the Stellar price will react to the overall performance of Bitcoin and other altcoins. With Bitcoin hovering above $40,000, there is a possibility that it will keep rising and test $50,000. If this happens, altcoins like XLM will also keep rising.
Stellar Lumens price prediction
The daily chart shows that the XLM price formed a double-bottom pattern at $0.2033 in July. In price action, this pattern is usually a bullish sign. The price is also moving along the 25-day and 50-day moving averages (MA). The price is between the 78.6% and 61.8% Fibonacci retracement levels. Therefore, the coin will likely keep rising as investors target the 50% retracement level at $0.4315.
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