Stellar (XLM) is consolidating below the critical $0.50 resistance level, trading at $0.45 with recent fluctuations showing a 5% 24-hour dip but a 2.5% weekly gain. Trading volume surged to $668 million, reflecting heightened investor interest. Crypto analyst Ali Martinez identified a bullish inverse head-and-shoulders pattern forming on the daily chart, with the neckline at $0.50. A confirmed breakout could propel XLM toward Fibonacci extension targets at $0.60 (1.272), $0.72 (1.618), and $0.77 (1.786).
Network activity underscores this potential, with Stellar now hosting 9.69 million active wallets and adding 5,000–6,000 new addresses daily, signaling steady adoption. Analyst Peter Brandt previously highlighted XLM's chart as promising, emphasizing the need to hold above the April low of $0.22. Short-term technical analysis from AMBCrypto suggests a breakout above $0.463 could trigger a 25% rally to $0.58, mirroring XRP's bullish flag-and-pole formation. The RSI at 60 indicates room for upside, though Bollinger Bands show resistance risks.
Market data reveals significant liquidity clusters at $0.4461 (support) and $0.4737 (resistance), with traders holding $7.79 million in short positions versus $4.41 million in longs. This bearish leverage could amplify upward volatility if a breakout occurs.