Bitcoin News Today: Stellar XLM Dips 4.68% as Analyst Forecasts $1 Breakout

Stellar’s native token, XLM, is currently navigating a turbulent phase in its price trajectory, with recent data showing a 4.68% decline over the past seven days, bringing its price down to $0.388 as of August 18 [1]. The token’s market capitalization has also dipped to $12.16 billion amid heightened selling pressure, signaling short-term bearish sentiment. Technical indicators reinforce this bearish momentum, with the RSI hovering near 46.59—below the neutral 50 level—and the MACD remaining flat, both suggesting indecision in the market. XLM has struggled to maintain levels above $0.40, with repeated price rejections from this threshold highlighting the weak momentum [1].

Amid the volatility, a bullish narrative is emerging from key analysts. Crypto strategist Ali Martinez has suggested that the recent dip may not be the end but a necessary correction before a larger breakout. He outlines a potential inverse head-and-shoulders pattern on XLM’s chart, a technical formation often seen as a precursor to a bullish move. According to Martinez’s analysis, this setup could potentially drive the token toward the $1 level later this year [1]. For such a scenario to unfold, however, XLM must first hold its support range between $0.36 and $0.37. A decisive move above $0.42–$0.45 would be a critical confirmation of bullish momentum, potentially opening the door for higher levels [1].

The current dynamics are not isolated to XLM but are part of a broader decline in the cryptocurrency market. Bitcoin has slipped below $110,000, and altcoins are facing similar selling pressure. Market participants are also holding back on major moves as they await key macroeconomic developments, including the Federal Reserve’s upcoming September meeting [1]. Liquidity concerns and uncertainty over broader economic conditions have added further pressure on crypto assets, making timing and risk management more important than ever.

Despite the near-term challenges, the long-term fundamentals of XLM remain intact. Stellar’s ecosystem is evolving, with continued expansion in cross-border payments and DeFi use cases contributing to its utility-driven growth. Analysts note that XLM’s resilience in downturns could position it well for gains once broader market conditions stabilize [1]. Unlike some altcoins that rely on speculative tactics, XLM’s potential growth is rooted in organic demand and real-world adoption.

The prediction of a $1 price target for XLM represents a high-stakes forecast, one that hinges on the token’s ability to stabilize, break out, and attract wider institutional interest. While the forecast is bullish, it is not without risk. Investors are advised to monitor both technical and macroeconomic signals closely, as volatility remains a defining feature of the current market environment [1].

Source:

[1] Stellar Crash Before the Boom? Analyst Predicts XLM’s Breakout to $1 - https://coindoo.com/market/stellar-crash-before-the-boom-analyst-predicts-xlms-breakout-to-1/

[2] PUMP Token Holds Top 100 Spot – But Analysts Fear ... - https://coindoo.com/market/pump-token-holds-top-100-spot-but-analysts-fear-major-breakdown-ahead/

[3] Bitcoin Bull Run 2025: BTC Price Poised For 130% Surge - https://blockchair.com/news/bitcoin-bull-run-2025-btc-price-poised-for-130-surge--629b454664f379bc