Buy the dip? Stellar (XLM) set for $ 1 breakout if these levels apply

Tl; Dr.

• XLM shows a reverse head and shoulders, with $ 0.50 neckline that indicates a possible $ 1 breakout.
• Trade volume and open interest fell, while liquidations tend to shorts after the July Volatility peak.
• A new ETF application can increase in the US established tokens such as Stellar, expanding possibilities for institutional exposures.

XLM prize and market activity

Stellar (XLM) traded at $ 0.39 at the time of writing, with a 24-hour trade volume of $ 324 million. Token has fallen by 3% daily and 4% daily. In the past month, XLM has fallen by 11%, even when most cryptomarkt achieved profits in August.

Crypto analyst Ali Martinez noticed,

“Stellar $ XLM still needs a dip for the outbreak up to $ 1.”

His graph suggests that the token is a reverse head and shoulder pattern, which often appears before trends.

Stellar $ XLM Needs another dip for the outbreak up to $ 1! pic.twitter.com/piyuoqgx2b

– Ali (@ali_charts) August 25, 2025

Interestingly, the pattern shows a left shoulder earlier this year, a head in May and June, and a developing right shoulder until August. Support is almost $ 0.36, aligned with the 0.618 Fibonacci retracement level. A move to this zone would complete the structure.

If XLM slips below $ 0.36, the following support level is almost $ 0.33. At the top the neckline is around $ 0.50. A confirmed outbreak above this price could open goals for $ 0.62, $ 0.82, $ 0.94 and $ 1.10 based on Fibonacci projections.

Indicators show neutral momentum

The relative strength index (RSI) is 44, slightly below the center of 50. This suggests a weaker momentum but not sold over. A fall to 30 would show heavier sale, while a push above 50 would indicate the power that returns.

In the meantime, the MACD lecture shows the line at -0.0035 and the signal line at -0.0051, with the histogram at 0.0016. The almost zero values ​​indicate consolidation. The MACD is almost up, which would suggest that Beerarish fades pressure when it continues.

Leverage and ETF developments

Coinglass data shows the trade volume by 10% to $ 465 million, while open interest has fallen by 5% to $ 314 million. Liquidation data before 26 August show $ 10K in short liquidations and $ 1K of long liquidations in Binance and Bybit.

The biggest recent peak in particular came mid -July, when millions of positions were liquidated during an increase above $ 0.45. Since then, the liquidation levels have been relaxed, with more pressure on short positions.

Separately was an application for the Crypto ETF made by Canary American reported By Eric Balchunas. The Spotfonds would mention the US-Origin tokens, such as Stellar. Balchunas noted: “Get ready for ETFs to try every conceivable combination.”