Stable position of XLM around $0.45, as an inverted head and shoulders pattern emerges projecting a potential rise toward $0.77.
Stellar's native cryptocurrency, Lumens (XLM), is currently trading at $0.4489, following a 0.01% daily gain and a consolidation phase after the July rally. The current market structure reflects a potential breakout, with analysts suggesting that a surge above resistance levels could lift XLM towards targets between $0.53 and $0.70 by the end of 2025.
The neckline of the inverse head and shoulders pattern, a bullish technical formation, remains the critical breakout point. If the $0.50 resistance level is broken, Fibonacci extension targets are set at $0.60, $0.70, and $0.77. These levels align with the 1.272, 1.618, and 1.786 extensions, respectively.
The head of the inverse head and shoulders formation formed between April and June, marking the lowest point below $0.25. The left shoulder formed near January levels, indicating a potential continuation of the pattern. The right shoulder developed in early August after a retracement from a sharp rally.
Recently, the price action tested the $0.50 resistance, aligning with the 1 Fib extension level. The intraday high for XLM was above $0.465, and during the Asian trading session, XLM opened its market with a price value of $0.451. The trading volume in the past 24 hours reached $716.17 million, representing a 46.57% increase compared to the previous day's activity.
Key retracement supports are observable at $0.40, $0.36, and $0.28, connected to the 0.618, 0.5, and 0.382 levels. These levels provide potential areas for XLM to find support if the price were to correct.
The outlook for Stellar (XLM) price in 2025 based on technical analysis and Fibonacci extensions suggests a potential upside with targets ranging broadly from around $0.26 up to $1.29. Various forecasts reflect optimistic technical breakout potentials supported by partnerships and growing utility in cross-border payments.
Investors should monitor technical resistance breaching and volume, alongside fundamental developments, to better gauge these price movements. While the predicted price ranges are wide, reflecting market volatility and underlying risks, the technical setup and Fibonacci extensions provide a bullish outlook for Stellar in the coming year.
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