Stellar XLM Dips 4.30% as Analysts Watch $0.3600 Support Before $1.00 Target

Stellar (XLM) has recently tested the $0.3901 level, drawing attention from market analysts who are closely monitoring the potential for a further pullback before a breakout toward the $1.00 psychological threshold [1]. The cryptocurrency has experienced a 4.30% decline, trading at $0.3901 as of the latest update. Chart patterns suggest the formation of a head-and-shoulders structure, with XLM forming its right shoulder near $0.3901 [1]. This pattern is typically associated with a potential reversal, indicating a correction before a possible upward move [1].

According to the analysis, Fibonacci retracement levels highlight key price zones for traders. The 0.618 retracement level near $0.3600 is considered a critical support area before any bullish momentum can be regained [1]. Analyst Ali, on a post from August 25, 2025, noted that Stellar still requires one more dip before any decisive breakout occurs [1]. The chart outlines a potential path with dotted arrows indicating rebounds toward $1.00 if the support holds.

The left shoulder of the pattern was formed earlier in the year around February, followed by a rally that created the head structure in mid-summer. The right shoulder is currently in development as prices consolidate, maintaining the symmetry often associated with reversal patterns [1]. The retracement levels mapped out include the 0.382 at $0.3071, 0.500 at $0.3336, and 0.786 at $0.4180. These are regarded as key points for short-term positioning and strategy decisions [1].

On the upside, the chart highlights potential price extensions with the 1.272 level at $0.5820, the 1.618 at $0.7315, and the 2.618 at $1.1197 [1]. These levels outline the possible trajectory if XLM confirms a breakout, offering a roadmap for both bulls and bears. Analysts are watching these levels closely, as volume and confirmation candles will likely determine the validity of the breakout in the coming weeks [1].

The $1.00 target has become a focal point for investors. A successful breakout beyond this threshold would represent a psychological milestone and an extension of over 150% from the current level of $0.3901 [1]. While some traders advocate for patience, waiting for a final pullback to create an attractive entry point, others remain skeptical about the pattern’s strength and XLM’s ability to maintain momentum after the dip [1].

The market post has drawn significant attention, with over 20.2K views and active engagement from traders and investors. The debate reflects a cautious yet hopeful outlook as the right shoulder continues to form [1]. The pivotal question remains whether Stellar can hold the $0.3600 support level and deliver the projected rally toward $1.00, which could redefine its position among alternative cryptocurrencies in the next trading cycle [1].

Source: [1] Stellar XLM Tests $0.3901 as Analysts Eye $0.3600 Before $1.00 Rally (https://cryptonewsland.com/stellar-0-3901-as-analysts-0-3600-1-00/)