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- XLM trades near $0.36 amid weekly decline but holds key support.
- Inverted head-and-shoulders pattern points to bullish reversal.
- Breakout above $0.52 could target $0.64, $0.94, and $1.10.
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Stellar (XLM), the native token of the Stellar blockchain, is showing early signs of preparing for a potential bullish breakout despite recent price weakness. While the cryptocurrency has been under pressure, analysts highlight technical patterns that could pave the way for a major rally in the coming weeks.
Current Market Performance
During today’s Asian trading session, Stellar opened at $0.3628, reflecting the ongoing weekly decline of over 5%. At the time of writing, XLM trades at $0.3589, down 0.8% in the last 24 hours. Market capitalization stands at $11.38 billion, with 24-hour trading volume dropping 26.81% to $203.95 million.
Intraday action showed three distinct phases: a brief rise toward $0.367, a prolonged consolidation between $0.362–$0.360, and a sharp pullback by midday. Despite these fluctuations, the price has held above the critical $0.33 support zone, a level aligned with the 0.618 Fibonacci retracement.
Technical Setup Hints at Rally Potential
According to analysis by Ali Charts, Stellar is currently forming an inverted head-and-shoulders pattern—a classic reversal signal in technical analysis. The neckline for this structure sits near $0.52, with the left shoulder developing earlier in the year, the head forming in April, and the right shoulder now shaping in September.
If XLM breaks above the neckline, analysts project targets at $0.64, $0.77, and $0.94, with a longer-term goal near $1.10. The most immediate resistance lies around $0.42, and a confirmed breakout above $0.52 would strengthen bullish momentum.
Accumulation Zone Signals Buyer Interest
The current trading range suggests that XLM may be in an accumulation phase, providing favorable entry points for buyers ahead of a breakout. This setup is technically significant, as it positions Stellar for potential upside moves that could carry the token toward the $1 mark.
Also Read: Shocking Document Confirms Ripple’s Bank Pilots & Stellar’s Mobile Money Push in Africa
While Stellar faces near-term volatility and downward pressure, its chart structure signals growing potential for a bullish reversal. If the inverted head-and-shoulders pattern plays out, XLM could be on track for its most significant rally of 2025.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
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