• Stellar (XLM) is down 13.79% in the last week.
• XLM is trading at $0.3608 with rising trading volume.
• An inverse head-and-shoulders pattern signals a possible reversal.
• Key support at $0.33 could define the next move.

Stellar (XLM) is trading under sustained bearish pressure, reflecting the broader weakness across the crypto market. In the past 24 hours, the token lost 1.78%, deepening a sharp 13.79% weekly decline.

At press time, XLM is trading at $0.3608 with a daily trading volume of $395.8 million. The surge of 22.16% in trading activity highlights that despite the price slump, market participants remain actively engaged. Its market capitalization stands at $11.31 billion, placing the token among the notable assets in the sector.

Also Read: Stellar (XLM) Could Soar to $0.68 as PayPal Considers PYUSD Integration

XLM Technical Patterns Suggest Reversal Setup

According to the crypto analyst Ali, charts reveal a developing inverse head-and-shoulders pattern for Stellar, a formation that typically signals a trend reversal. The left shoulder appeared earlier this year, followed by the head between April and June. Recent price movements are shaping what looks like the right shoulder, building the foundation for a possible upside breakout.

The neckline of this pattern sits near $0.50. A breakout above that level with solid trading volume could validate the reversal and unlock significant upside potential. Fibonacci projections outline targets at $0.62, then $0.82, and eventually the $0.95 to $1.00 range. From current prices, this scenario represents a potential threefold rally in the months ahead if the pattern unfolds successfully.

Until the breakout occurs, Stellar is in a consolidative phase. Support at $0.33 is the key to upholding the bulls’ thesis. Traders monitoring the region closely may find decent chances of filling positions at a lower risk level.

Market Participation and Sentiment Trends

Market information reveals gradual changes in participation. Open interest in XLM gained 0.86% to $315.85 million. The gain is a sign of additional capital flowing into positions, but the momentum in the market is moderate, and there is not yet aggressive conviction from market players.

The OI-weighted rate is at 0.0046 in a mildly bullish position. Large market players are biased towards longs but with a weak level of conviction. Sentiment indicators describe cautious optimism, with the charts indicating only a minor positive area.

Overall, the technical groundwork of Stellar appears more robust than the present market attitude indicates. If the bulls hold $0.33 and strength grows around resistance, XLM may turn from weeks of losses to a break higher phase focused on higher price realms.

Also Read: Stellar Price Prediction: XLM Defending $0.36, Aiming For $1.10 Target