Stellar’s native token, XLM, is under pressure this week, trading at $0.388 after falling 4.68% in the past seven days.
The drop has pushed its market capitalization down to $12.16 billion, as selling activity weighed on short-term sentiment.
Technical Indicators Signal Weak Momentum
The RSI is sitting near 46.59, hovering below neutral territory, while the MACD remains flat, signaling indecision among traders. On the broader chart, XLM has struggled to hold above the $0.40 mark, with repeated rejections hinting at weak momentum.
Analyst Predicts One More Dip Before Rally
Despite the pullback, some analysts see this correction as a setup for a larger move. Crypto strategist Ali Martinez highlighted that XLM may still need “one more dip” before staging a significant breakout. His chart outlines a potential inverse head-and-shoulders pattern, a bullish technical setup that could push Stellar toward the $1 level later this year.
Wider Market Weakness Adds Pressure
The recent decline comes as part of a broader market downturn, with Bitcoin slipping below $110,000 and altcoins facing parallel selling pressure. Liquidity concerns, coupled with caution ahead of macroeconomic events such as the Federal Reserve’s September meeting, have also added to investor hesitancy.
Key Levels to Watch for XLM
If Stellar can hold its support range around $0.36–$0.37, traders believe it could mark the bottom before a recovery phase. A decisive break above $0.42–$0.45 would be the key trigger to confirm bullish momentum and open the path toward higher levels.
Long-Term Outlook Remains Bullish
For now, short-term uncertainty continues, but long-term bullish setups remain intact. Stellar’s ecosystem, focused on payments and cross-border settlements, continues to attract attention, and analysts argue that its resilience during downturns could position it for strong gains once broader market conditions improve.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/market/stellar-crash-before-the-boom-analyst-predicts-xlms-breakout-to-1/