Buy the Dip? Stellar (XLM) Set for $1 Breakout if These Levels Hold
TL;DRXLM Price and Market ActivityStellar (XLM) was trading at $0.39 at the time of writing, with a 24-hour trading volume of $324 million. The token has fallen 3% daily and 4% in the past week. Over the last month, XLM has dropped 11%, even as most of the crypto market posted gains in August.Crypto analyst Ali Martinez noted,“Stellar $XLM still needs one more dip before the breakout to $1.”His chart suggests the token is forming an inverse head and shoulders pattern, which often appears before a trend reversal.Stellar $XLM still needs one more dip before the breakout to $1! pic.twitter.com/pIyUOqGX2B— Ali (@ali_charts) August 25, 2025Interestingly, the pattern shows a left shoulder earlier this year, a head in May and June, and a developing right shoulder through August. Support is near $0.36, aligned with the 0.618 Fibonacci retracement level. A move down into this zone would complete the structure.If XLM slips below $0.36, the next level of support sits near $0.33. On the upside, the neckline is around $0.50. A confirmedbreakoutabove this price could open targets at $0.62, $0.82, $0.94, and $1.10 based on Fibonacci projections.Indicators Show Neutral MomentumThe Relative Strength Index (RSI) is at 44, slightly below the midpoint of 50. This suggests weaker momentum but not oversold conditions. A fall toward 30 would show heavier selling, while a push above 50 would indicate strength returning.Meanwhile, the MACD reading shows the line at -0.0035 and the signal line at -0.0051, with the histogram at 0.0016. The near-zero values point to consolidation. The MACD is close to crossing upward, which would suggestfading bearishpressure if it continues.Leverage and ETF DevelopmentsData from Coinglass shows trading volume down 10% to $465 million, while open interest is down 5% to $314 million. Liquidation data for 26 August shows $10K in short liquidations and $1K in long liquidations across Binance and Bybit.Notably, the largest recent spike came in mid-July, when millions in positions were liquidated during a surge above $0.45. Since then, liquidation levels have eased, with more pressure on short positions.Separately, a filing for the Canary American-Made Crypto ETF was reported by Eric Balchunas. The spot fund would list the US-origin tokens, such as Stellar. Balchunas noted, “Get ready for ETFs to try every combo imaginable.”