Stellar (XLM) is showing signs of a potential bullish reversal if it maintains its critical $0.30 support level. Analyst Ali identified an inverse head-and-shoulders pattern that could push XLM toward $0.50 and beyond.
Fibonacci projections from Ali suggest targets at $0.62, $0.70, $0.82, and possibly $0.94, depending on market momentum. This aligns with a possible breakout structure, though current short-term bearish pressure keeps the outlook cautious near-term.
At press time, CoinMarketCap data shows XLM trading at $0.3287, down 1.96% over the past hour and 4.94% daily. The token has dropped 18.32% in the past week, bringing it closer to the support zone mentioned by Ali.
Meanwhile, EtherNasyonal reports that XLM’s weekly chart structure in 2025 mirrors its 2017 pre-rally formation. Back in 2012017, XLM broke from a descending wedge and surged, and the current setup reflects similar technical behaviour.
Could Stellar’s On-Chain Growth Signal a Major Rally?
Furthermore, ChartNerd notes XLM continues to follow a parabolic curve pattern supported by intact 20 and 55 EMAs. The technical structure shows alignment with a multi-year Elliott Wave cycle, targeting $1.50, $2.09, and $3.37.
He adds that a maximum upside under a bullish euphoria phase could potentially drive XLM to $8 if momentum sustains. Despite corrections, the overall setup remains strong and suggests longer-term bullish potential through continued wave expansion.
On-chain data from DeFiLlama shows Stellar’s Total Value Locked (TVL) at $143.83 million, up 0.34% in 24 hours. The stablecoin market cap also grew 8.06% in a week, reaching $255.24 million, showing rising DeFi demand on Stellar.
Stellar’s 24-hour DEX volume sits at $3.8 million, with app revenue at $1,250 and app fees totalling $2,501. With a current market cap of $10.658 billion and FDV of $16.654 billion, Stellar is gaining traction across DeFi platforms.