Stellar ($XLM) Eyes Breakout After Bullish Pattern
XLM forms an inverse head and shoulders pattern. A breakout above $0.50 could send it soaring to $0.77.
- XLM shows inverse head and shoulders pattern
- $0.50 is the key breakout level to watch
- Next major target could be $0.77 if confirmed
Bullish Pattern Forms on Stellar’s Chart
Technical analysts are watching Stellar (XLM) closely as it forms a classic inverse head and shoulders pattern — a setup often seen as a precursor to a major bullish breakout.
Currently, XLM is trading just below $0.50, a critical resistance level that has capped price movement in recent weeks. If the token can decisively break above this threshold, technical analysis suggests a potential rally toward the $0.77 zone — a level not seen since its previous market cycle highs.
The pattern consists of three clear dips: the left shoulder, the head, and the right shoulder. As the neckline sits near $0.50, a breakout with strong volume could confirm the bullish setup and attract further interest from swing traders and long-term investors alike.
Why $0.77 Could Be the Next Target
If XLM breaks through the neckline resistance, historical chart patterns indicate a measured move target toward the $0.77 level. This projection is based on the vertical distance from the “head” to the neckline, applied upward from the breakout point.
Such a move would represent a significant price increase, signaling renewed strength in the Stellar network and possibly reflecting broader altcoin market momentum.
However, traders should watch for confirmation through volume and retests before entering aggressive long positions. False breakouts are not uncommon, especially in volatile crypto markets.
Fundamentals Still Matter
While the chart looks promising, long-term success for XLM also depends on its utility and adoption in the real world. As a blockchain project focused on cross-border payments, Stellar continues to form partnerships with financial institutions and fintech platforms — factors that can strengthen both sentiment and use case.
A technical breakout backed by improving fundamentals could make this a strong setup for bulls heading into the next leg of the market cycle.
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