Stellar Price Prediction: XLM Eyes $1 Amid Bullish Reversal

Inverse Head-and-Shoulders Pattern Hints at XLM Rally

Declining trends over several months have placed Stellar (XLM) price in a period of consolidation, which could turn into a rally. XLM could hit $0.50 in the near future, and further, if momentum is sustained, according to the charts. Major zones are being monitored by traders where a strong breakout could trigger a surge.

Analyst Ali identified a distinct inverse head-and-shoulder formation on the daily chart, along with a bullish reversal formation, indicating that the long-standing correction to XLM has ended. The neckline is also close to the $0.50 mark, which has become a significant resistance level. Although prices are currently under the level of $0.30, the setup is valid and propagates the potential of an extended move to higher Fibonacci zones. A surge above $0.50 would lead to the range of $0.69 and $0.94, aligning with the expectation for a push toward the $1 mark.

XLMUSD 1D CHART | SOURCE: X

Moreover, the token is accumulating on the shorter timeframes after a volatile recovery. The RSI is below the neutral level and is slowly improving, which is an indication of a recovery. In the meantime, the MACD indicator has just gone a notch bullish, displaying signs of an upward-moving trend. 

XLMUSD 4H CHART | SOURCE: TradingView

However, traders should monitor the price of $0.35, as a strong break above this level would confirm a short-term reversal, whereas failure to hold the level of $0.30 could trigger selling pressure.

Stellar’s Utility Strengthens Outlook

In addition to technicals, the increasing utility of networks remains the foundation of an optimistic approach to Stellar in the long term. The emphasis on cross-border payments and tokenized assets that the protocol possesses has kept it relevant in institutional and retail communities. Collaborations with fintech companies and blockchain creators are increasing their application, which slowly leads to adoption in the real world.

Additionally, with blockchain infrastructure initiatives being a topic of focus, Stellar has an effective transaction model and scalability offerings that can be selected as an option to integrate with enterprises. This improvement in the ecosystems would also boost investor confidence and help the price rise in the long run.

Altcoin Optimism Fuels XLM’s Next Bullish Phase

On the other hand, the mood in the market has shifted positively in the crypto industry, and capital has returned to altcoins after weeks of consolidation. Risk-taking is also boosted by positivity surrounding the next Bitcoin halving and better macro conditions.

Furthermore, investors are placing an early position on the possible increase in high utility assets such as XLM, which are usually profitable during bullish markets. As the liquidity situation has improved and volatility levels have declined, a gradual upside in the next weeks is expected.

In the future, continued support of above $0.30 will be important in supporting the bullish narrative. A firm breakout above $0.50 will lead to $0.80 and above, which confirms the reversal trend shown by analysts.

At the time of writing, XLM trades near $0.33, as indicated by the momentum that there is accumulation going on. If the existing trends are maintained, Stellar crypto could be on the verge of a multi-month spike to the $1 psychological target.