- Stellar (XLM) is forming a strong inverse head and shoulders pattern, similar to XRP’s earlier bullish breakout.
- A close above $0.50 with high volume could trigger a rally toward $0.71–$0.77.
- Failure to break the neckline could send XLM back to $0.40 or $0.36 support levels.
- Fibonacci extensions suggest strong upside potential if the breakout is confirmed.
Stellar (XLM) is capturing traders’ attention as its price action begins to resemble XRP’s earlier bullish rally. On the daily chart, XLM has formed an almost textbook inverse head and shoulders — a classic bullish reversal pattern.
The left shoulder dates back to January, the deep head formed in late May, and the right shoulder has been steadily building since August. This structure points toward a possible major breakout, with the $0.50 neckline serving as the key level to watch.
Mirroring XRP’s Past Rally
Earlier this year, XRP followed a nearly identical trajectory. Once it broke its neckline, the token surged in double-digit percentage gains before slowing down. XLM’s chart suggests a similar scenario could play out if buyers can muster enough momentum.
Currently, Stellar trades at $0.452, just below the critical breakout level. A decisive daily close above $0.50, backed by strong trading volume, would be a strong bullish confirmation.
Also Read: XRP Price Drops 4% After SEC Settlement — Why the Market Isn’t Rallying Yet
Targets and Fibonacci Levels
If the breakout occurs, Fibonacci extension levels indicate the next significant targets:
- $0.71 (1.618 extension)
- $0.77 (near the 1.786 extension)
These targets mirror the percentage gain XRP achieved after its breakout, suggesting the potential for a substantial upward move.
The Bearish Scenario
If bulls fail to push above $0.50, XLM may retreat to retest $0.40 or even $0.36 support before attempting another breakout. This would keep the pattern intact but delay the rally.
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