Buy the Dip? Stellar (XLM) Set for $1 Breakout if These Levels Hold

TL;DR

• XLM exhibits an inverse head and shoulders, with $0.50 neckline signaling a doable $1 breakout.
• Buying and selling quantity and open curiosity fell, whereas liquidations lean towards shorts after July’s volatility spike.
• A brand new ETF submitting might increase U.S.-based tokens like Stellar, increasing institutional publicity alternatives.

XLM Value and Market Exercise

Stellar (XLM) was buying and selling at $0.39 on the time of writing, with a 24-hour buying and selling quantity of $324 million. The token has fallen 3% day by day and 4% previously week. During the last month, XLM has dropped 11%, whilst many of the crypto market posted features in August.

Crypto analyst Ali Martinez famous,

“Stellar $XLM nonetheless wants yet another dip earlier than the breakout to $1.”

His chart suggests the token is forming an inverse head and shoulders sample, which regularly seems earlier than a development reversal.

Stellar $XLM nonetheless wants yet another dip earlier than the breakout to $1! pic.twitter.com/pIyUOqGX2B

— Ali (@ali_charts) August 25, 2025

Curiously, the sample exhibits a left shoulder earlier this yr, a head in Might and June, and a creating proper shoulder by means of August. Help is close to $0.36, aligned with the 0.618 Fibonacci retracement degree. A transfer down into this zone would full the construction.

If XLM slips under $0.36, the following degree of help sits close to $0.33. On the upside, the neckline is round $0.50. A confirmed breakout above this value might open targets at $0.62, $0.82, $0.94, and $1.10 primarily based on Fibonacci projections.

Indicators Present Impartial Momentum

The Relative Energy Index (RSI) is at 44, barely under the midpoint of fifty. This implies weaker momentum however not oversold situations. A fall towards 30 would present heavier promoting, whereas a push above 50 would point out energy returning.

In the meantime, the MACD studying exhibits the road at -0.0035 and the sign line at -0.0051, with the histogram at 0.0016. The near-zero values level to consolidation. The MACD is near crossing upward, which might recommend fading bearish strain if it continues.

Leverage and ETF Developments

Information from Coinglass exhibits buying and selling quantity down 10% to $465 million, whereas open curiosity is down 5% to $314 million. Liquidation information for 26 August exhibits $10K briefly liquidations and $1K in lengthy liquidations throughout Binance and Bybit.

Notably, the biggest latest spike got here in mid-July, when tens of millions in positions have been liquidated throughout a surge above $0.45. Since then, liquidation ranges have eased, with extra strain on quick positions.

Individually, a submitting for the Canary American-Made Crypto ETF was reported by Eric Balchunas. The spot fund would listing the US-origin tokens, comparable to Stellar. Balchunas famous, “Prepare for ETFs to attempt each combo possible.”