- Stellar forms a textbook inverse head-and-shoulders pattern, with neckline resistance at $0.50 and measured target aligning with $0.77.
- Network accounts reach 9.69 million, adding 5,000–6,000 new XLM addresses daily, boosting liquidity and strengthening blockchain adoption metrics.
- Technical indicators show MACD turning positive and RSI at 62.38, while futures data points to a possible short squeeze above $0.48.
Stellar (XLM) is approaching a critical breakout level at $0.50, with bullish chart signals pointing toward a potential rally to $0.77.
Inverse Head-and-Shoulders Signals Bullish Setup
The Stellar daily chart displays a textbook inverse head-and-shoulders formation, a common indicator of trend reversal. The left shoulder formed between late January and February near the $0.30–$0.32 range. The head followed in late April, marking a cycle low around $0.20. The right shoulder developed in late July through early August, with higher support at $0.35, reflecting stronger buyer activity and weakening selling pressure.
The neckline sits at $0.50, a major horizontal resistance level connecting February and July peaks.XLM is approaching $0.45, just below this important level of resistance. A close above $0.50 on confirmation would complete the pattern, potentially paving the way for a trip to higher Fibonacci extension levels.
Focused estimates place $0.52 as the confirmation breakout level, then $0.60, $0.71, and the full target at $0.77. Failure to secure a breakout could see price retrace toward $0.40 or $0.35, with a drop below $0.35 invalidating the bullish formation.
Network Growth and Institutional Adoption Boost Outlook
Steph_iscrypto reported that Stellar accounts have surged to a record 9.69 million, with 5,000–6,000 new XLM addresses created daily. This steady user growth strengthens liquidity and reflects expanding network activity.
Institutional partnerships are reinforcing Stellar’s adoption curve. Visa has expanded its stablecoin settlement capabilities to Stellar, enabling faster and cheaper cross-border transactions. Marketnode — a collaboration between SGX and Standard Chartered — has also integrated Stellar for asset tokenization in the Asia-Pacific region.
The network’s three-to-five second transaction finality and near-zero fees of $0.00001 could also facilitate adoption of PayPal’s PYUSD stablecoin on Stellar, enhancing real-world usage.
Technical Indicators and Market Positioning Favor Bulls
Scopuly’s market data shows XLM’s MACD histogram turning positive at +0.0001397, while the RSI stands at 62.38, still below the overbought level of 70. Price action has positioned $0.47 as a key pivot, with a close above it potentially transforming it into strong support.
Futures markets reflect rising bullish interest, with open interest climbing 6.05% in 24 hours. Short positions are heavily concentrated near $0.47, creating potential for $4.09 million in liquidations if price breaks above $0.48, possibly triggering a short squeeze.
Trading volume has risen to $517 million, up 10.5% in 24 hours, suggesting increased accumulation ahead of a possible breakout. If momentum continues, Fibonacci extensions point toward $0.56, $0.68, and ultimately $0.77 — aligning with the inverse head-and-shoulders measured target.
