Amid heavy selling, Stellar (XLM) demonstrates a defense of the $0.38 level with potential signs of an upward trend.
Bullish Pattern Formation at Key Resistance
As of the current writing, Stellar (XLM) is priced at $0.3892, reflecting a drop of 1.22% in the last 24 hours and 4.41% over the past week. Analyst Ali Martinez indicates that a head-and-shoulders pattern is forming on the daily chart. The left shoulder formed between January and March, followed by a peak in July near $0.50, creating the head. Currently, the right shoulder is being formed through August.
The neckline of this pattern sits at $0.497, serving as the main breakout zone. Until this level is cleared, the pattern remains incomplete. Support near $0.364 has held strong so far; however, if it fails, the next support is around $0.331.
Buyers Defend $0.38 with Increased Volume
XLM saw a sharp drop from $0.398 to $0.380 in the past day, but strong buying brought it back to $0.389 before the close. Trading volume surged over 115% to $402 million. Data from Binance shows around 95 million tokens traded at $0.380, demonstrating robust demand at that level.
Despite the drop, buyers remained active. Short-term resistance is near $0.393, with stronger pressure expected around $0.42. If XLM crosses that, it could spark a shift in the short-term trend.
Long-Term BTC Chart Shows Breakout Pattern
On the weekly chart against Bitcoin (BTC), XLM has broken out of a long-term downtrend that started in 2015. A similar breakout occurred in late 2017 followed by a strong rally. The current breakout seen in mid-2025 resembles that previous move.
The RSI is moving higher, indicating growing strength. This may support a larger move if buying continues. Expected growth targets are around 0.000027 BTC, 0.000043 BTC, and 0.000068 BTC.
In conclusion, Stellar (XLM) shows signs of potential growth while defending key levels despite recent sales. Analysis of current charts indicates the possibility of further strengthening.
