Stellar (XLM) Faces Final Dip Before Potential $1 Breakout

Stellar (XLM) appears to be on the brink of a potential price breakout, but analysts suggest that one last dip is likely required before the token could reach the $1 level. A recent analysis by crypto strategist @Ali_charts on X highlights a historical price pattern indicating that XLM tends to experience a sharp upward move after a significant dip. This pattern is currently being repeated, suggesting that a final consolidation phase is underway [1].

The price of XLM has been under short-term pressure, with a 4.68% drop over the past seven days, settling at $0.388 as of August 18. This has brought its market capitalization to $12.16 billion amid increased selling pressure. Technical indicators like the RSI and MACD reflect market indecision, with the RSI at 46.59—below the neutral 50 level—and the MACD showing minimal movement. XLM has repeatedly failed to sustain levels above $0.40, signaling weak momentum in the near term [1].

Crypto strategist Ali Martinez has identified an inverse head-and-shoulders pattern on the XLM chart, a technical formation often seen as a precursor to a bullish breakout. Martinez forecasts that XLM could move toward $1 by the end of the year, provided it holds its support range between $0.36 and $0.37. A decisive move above $0.42–$0.45 would confirm the formation and serve as a key bullish signal [1].

The broader cryptocurrency market is also facing downward pressure, with Bitcoin trading below $110,000 and other altcoins experiencing similar selling pressures. Market participants are cautious ahead of the Federal Reserve’s upcoming September meeting, which could influence liquidity and investor sentiment. In this context, timing and risk management have become increasingly important for traders and investors [1].

Despite the near-term volatility, XLM’s long-term fundamentals remain robust. The Stellar network continues to expand its presence in cross-border payments and DeFi, which are crucial for utility-based growth. Analysts note that XLM’s resilience during downturns may position it well for gains once the broader market stabilizes. Unlike speculative altcoins, XLM’s growth is largely tied to real-world adoption and organic demand [1].

The $1 price target for XLM is still a bold forecast and hinges on the token’s ability to stabilize in the short term, confirm its breakout, and attract institutional interest. Investors are advised to closely monitor both technical and macroeconomic signals, given the volatile nature 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/