Stellar $XLM Could Rally Toward $1 If It Holds $0.30 Support Level

Stellar’s inverse head and shoulders pattern suggests a reversal, with potential targets near $0.50.

Current structure mirrors 2017’s breakout rally, indicating possible rally if momentum and support holds.

Stellar’s network strength, new partnerships, and DeFi growth support price potential.

Current trading levels and chart formations suggest that $XLM market participants are closely monitoring support as they await for a breakout confirmation.Stellar (XLM) is supported by technical patterns and historical price structures

Technical Setup Points to Bullish Reversal

An inverse head and shoulders pattern is developing on the XLM/USDT daily chart with a left shoulder, head, and right shoulder. This pattern is often seen as a bullish reversal structure.This positioning suggests that a breakout could be forming.Currently,the price is slightly above the 0.5 Fibonacci retracement level near $0.33158

The neckline resistance is approximately $0.49747, and a break above this level could lead to a strong rally.

Source: Ali Charts Via X

Price targets that align with Fibonacci extension levels lie between $0.36490 and $0.41818, while longer-term goals include $0.62031, $0.69065, and $0.82133

Some are optimistic that the projection could extend close to the psychological $0.90–$1.00 zone. Volume and momentum indicators would be essential to confirm the strength of any breakout.

Historical Price Patterns Suggest Repeating Cycle

An analyst compared the current XLM chart structure to the 2017 price action,and noted a strong resemblance. The 2017 cycle showed a prolonged descending wedge followed by a breakout and parabolic price surge.

Source: EtherNasyonal Via X

The current setup is showing the 2017 breakout when XLM tested support first and then started its rapid climb.With the structures looking similar analysts are of the view that a retest of $0.30 could start a breakout from the descending wedge.

If XLM holds above this support level, it could follow in the path that led to the 2017 rally. However a breakdown below $0.30, would negate this scenario and push the token to more downside risks.

Fundamental Factors Support Growth

Stellar’s network operations provide real-world use cases such as international transfers and banking solutions using their strong security and reliability .The project benefits from an experienced team and ongoing development, particularly with DeFi growth on the Soroban platform. New partnerships are also in progress, indicating potential future catalysts.

Despite the strengths, the price has not yet experienced any significant upward momentum. This can be attributed to Limited marketing and institutional accumulation. The current cycle looks long lasting,with sustained growth expected over the longer term rather than quick spikes.While retail investors debate, larger holders are quietly building positions.As of this writing Stellar (XLM) is trading at $0.3307, after falling 3.90% in 24 hours and 18.72% over the past week. The market is watching to see if support levels hold and if the bullish patterns will materialize into a rally.

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