Stellar (XLM) Breaks Bullish Flag Pattern, Eyes $0.75 Target

Recent technical developments in the Stellar (XLM) chart have generated considerable attention among cryptocurrency analysts, with several key signals pointing toward a potential upward move. Crypto analyst Ali, known as @ali_charts, has highlighted a clear breakout on the four-hour chart, suggesting that XLM is well-positioned to continue its bullish trend following a strong price impulse in July and a consolidation phase within a downward channel [1]. This consolidation, forming what is known as a bullish flag, has now been decisively broken, unlocking a potential price target of $0.75.

Ali’s analysis is grounded in classic chart patterns. The initial sharp rise from late June into mid-July created a “flagpole,” followed by a consolidation period that adhered to Fibonacci retracement levels—specifically the 0.618 at around $0.37 and the 0.786 near $0.42. After consolidating within these levels, XLM broke out cleanly above the upper trend line of the flag. This breakout area is estimated to be in the low to mid $0.40s [1]. Following the breakout, a small pause near $0.45 occurred, a common retest of support that further confirmed the strength of the move.

The price projection to $0.75 is derived from a combination of the flagpole height and Fibonacci extensions. The 1.0 extension aligns with $0.52, while the 1.272 extension sits around the mid $0.60s [1]. If XLM can maintain momentum past these levels, it could potentially reach the $0.75 mark, especially if the breakout gains attention and volume. This scenario represents a textbook bullish flag pattern, where the trend resumes after a well-defined consolidation phase.

For the bullish case to remain valid, XLM must continue to hold above the broken flag trend line. Additionally, reclaiming and holding the July high near $0.52 is crucial to maintaining the projection’s validity [1]. Should the price fail to do so or drop below the $0.42–$0.45 support zone, the pattern’s strength would be called into question, and the potential for a reversal would increase.

Other recent developments support the positive technical outlook. A rare triple EMA crossover (20/50/100) on the four-hour chart has historically preceded a 122% price surge, adding to the bullish signal [6]. Meanwhile, a recent dip to $0.44 is seen by some analysts as a potential buying opportunity ahead of the next upward leg [5]. Additionally, XLM has shown significant momentum, with a 328% gain in the past month driven by growing interest in cross-border payments and real-world asset (RWA) use cases [4]. A monthly rally exceeding 20% has also reinforced the asset’s strength [4].

However, not all signals are bullish. A bearish inside bar pattern has formed on the XLMUSDT pair, according to AInvest, indicating potential downward pressure and a test of key support levels [8]. While XLM has gained 10% in the past week and 3% in the last 24 hours, the movement remains relatively moderate [2].

In summary, while the technical indicators point to a strong case for an upward move, traders are advised to closely monitor key resistance and support levels, as well as volume patterns, before entering positions. The recent flag breakout, combined with the EMA crossover and Fibonacci projections, provides a compelling argument for a potential rally. However, as with all market analysis, outcomes depend on continued buyer participation and the absence of unforeseen external pressures.

[1] CoinMarketCap. (n.d.). Chart Signals Stellar (XLM) Is Ready for Next Rally. https://coinmarketcap.com/community/articles/689b3bd2e5de8d42b785ed89/

[2] BeInCrypto. (2025). Stellar Price Holds Bullish Setup, But Gains May Wait. https://beincrypto.com/stellar-price-bullish-setup-holds-gains-may-wait/

[3] The Tradable. (2025). XLM Coin Price Prediction: Could Stellar Hit $0.52 as Bulls Push Past $0.46? https://thetradable.com/crypto/xlm-coin-price-prediction-could-stellar-hit-052-as-bulls-push-past-046-3--v

[4] AInvest. (2025). Stellar Gains 328% on Cross-Border Payments and RWA Momentum. https://www.ainvest.com/news/stellar-gains-328-cross-border-payments-rwa-momentum-2508/

[5] The Tradable. (2025). XLM Price Prediction: Why Stellar Could Hit $0.52 Despite Today’s 3.42% Drop. https://thetradable.com/crypto/xlm-price-prediction-why-stellar-could-hit-052-despite-todays-342-drop-3--v

[6] CoinCentral. (2025). Missed the Last Crypto Boom? Here’s the Top Crypto to Buy in 2025 Before It Explodes. https://coincentral.com/missed-the-last-crypto-boom-heres-the-top-crypto-to-buy-in-2025-before-it-explodes/

[7] Crypto Economy. (2025). Why BlockDAG, Litecoin, Stellar, and Toncoin Are the Best Crypto to Invest in Now. https://crypto-economy.com/why-blockdag-litecoin-stellar-and-toncoin-are-the-best-crypto-to-invest-in-now/

[8] AInvest. (2025). Stellar (XLMUSDT) Market Overview: Bearish Momentum, Key Support Testing. https://www.ainvest.com/news/stellar-xlmusdt-market-overview-bearish-momentum-key-support-testing-2508/