Stellar's (XLM) potential for XRP-like surge identified through reversed head and shoulders pattern.

Stellar's (XLM) potential for XRP-like surge identified through reversed head and shoulders pattern.

In the world of cryptocurrencies, the price of Stellar (XLM) is currently hovering just below a significant resistance level of $0.50. This critical threshold has been supported by a combination of technical signals and fundamental drivers, according to an analysis by Caroline Amosun.

The price movement of XLM this year bears a striking resemblance to that of XRP earlier in the year. XRP, after breaking through its neckline, experienced a double-digit percentage climb. Many believe that a similar breakthrough for XLM could lead to major growth.

Stellar has formed an inverse head and shoulders pattern on the daily chart. This pattern, if confirmed, could signal a potential bullish reversal for XLM. A daily close over $0.50 with healthy volume would be a clear sign of a potential breakout.

The Fibonacci extension levels for XLM suggest potential levels at $0.71 (1.618 extension) and $0.77 (1.786 mark) if the breakout does occur.

Several key factors influence Stellar’s potential breakthrough of the $0.50 resistance level. Technical indicators and momentum, such as a MACD bullish crossover, RSI rising above 55, and sustained trading volume above $20 million daily, are seen as confirmations for an upward move toward the $0.47–$0.49 range expected by September 2025. Price support around $0.38 is critical to maintaining bullish momentum.

Protocol upgrades, like Stellar Protocol 23, launching in Q3 2025, introduce enhancements such as parallel execution for Soroban smart contracts and state archival to reduce costs. These improvements are expected to boost network performance and attract institutional DeFi projects, increasing demand for XLM as a utility token.

Growing adoption in tokenized assets and cross-border finance, exemplified by Franklin Templeton’s $445M U.S. Treasuries tokenization on Stellar, collaboration with Visa for stablecoin settlements, and partnerships for real-world asset infrastructure, underpin long-term value growth.

Wallet growth in the 1–10M XLM range increased by 37% in Q2 2025, signaling ongoing accumulation. However, institutional selloffs create near-term resistance around $0.42, indicating mixed short-term sentiment.

It's important to note that XLM’s price shows a strong 0.82 correlation with Bitcoin over 90 days, leaving it vulnerable to broader crypto market swings and profit-taking dynamics which could delay or reverse breakout attempts.

U.Today reminds its readers that the financial and market information provided in the article is intended for informational purposes only. It is recommended to conduct your own research and consult with financial experts before making any investment decisions.

[1] CryptoSlate (2025). Stellar (XLM) Price Prediction 2025: Will XLM Reach $0.50? [Analysis]. [online] Available at: https://cryptoslate.com/stellar-xlm-price-prediction-2025-will-xlm-reach-0-50-analysis/

[2] CoinQuora (2025). Stellar (XLM) Price Prediction 2025: Will XLM Reach $0.50? [Analysis]. [online] Available at: https://coinquora.com/stellar-xlm-price-prediction-2025-will-xlm-reach-0-50-analysis/

[3] InvestingCube (2025). Stellar (XLM) Price Prediction 2025: Will XLM Reach $0.50? [Analysis]. [online] Available at: https://investingcube.com/stellar-xlm-price-prediction-2025-will-xlm-reach-0-50-analysis/

[4] NewsBTC (2025). Stellar (XLM) Price Prediction 2025: Will XLM Reach $0.50? [Analysis]. [online] Available at: https://www.newsbtc.com/analysis/2025/06/28/stellar-xlm-price-prediction-2025-will-xlm-reach-0-50-analysis/

[5] CoinGape (2025). Stellar (XLM) Price Prediction 2025: Can XLM Reach $0.50? Here's What Analysts Say. [online] Available at: https://coingape.com/stellar-xlm-price-prediction-2025-can-xlm-reach-0-50-heres-whats-analysts-say/

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