Stellar trades around $0.45 and challenges key neckline resistance of $0.50 for break out confirmation.
Inverse Head and Shoulders pattern projects a target range of $0.75–$0.77 upon confirmed breakout.
Fibonacci levels align with projected upside, adding strength to the $0.77 target scenario.
Stellar (XLM) is trading close to the $0.50 resistance, forming an inverse Head and Shoulders pattern. A breakout could propel the price toward $0.77, according to chart analysis.
Pattern Structure and Breakout Potential
Ali (@ali_charts) identifies a clear inverse Head and Shoulders formation on the XLM/USDT daily chart. This bullish reversal pattern developed over several months in 2024.
The left shoulder formed in early February, the head in late May, and the right shoulder in late July to early August. The neckline, set around $0.50, now acts as a decisive resistance level.
A confirmed break above this neckline could trigger the projected upside move, with $0.77 set as the target zone.
Fibonacci Alignment and Target Zones
The chart uses Fibonacci extensions to refine price targets after the potential breakout. Important reference levels are $0.566, $0.662 and $0.771.
The $0.77 mark represents 1.786 FIBONACCI extension and matches the measured move in the Head and Shoulders pattern. This syncing adds more power to the bullish situation.
Recent price action has also reclaimed major retracement levels after the rally from the $0.27 low, showing sustained upward pressure.
Support Levels and Market Context
The sharp July rally from the head’s low to the neckline signaled strong buying momentum. The next retracement was supported around the levels of $0.40.
Such support at the point of 0.618 in the retracement created a technical foundation to the present action upward. Failure to break above the 0.50 mark may lead to a re-test of the support.Stellar’s movement comes as XRP trades at $3.12 as of writing, with a daily drop of 4.90% but a 1.38% gain over the week.
