Stellar&#8217;s native cryptocurrency, XLM, is showing a strong technical pattern on its daily chart that could signal a major price rally. Analysts have identified an &#8220;almost perfect inverse head and shoulders&#8221; pattern, a bullish formation often seen as a precursor to significant upward price movement. The left shoulder of this pattern was formed in January, &hellip; 
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Stellar's native cryptocurrency, XLM, is showing a strong technical pattern on its daily chart that could signal a major price rally. Analysts have identified an "almost perfect inverse head and shoulders" pattern, a bullish formation often seen as a precursor to significant upward price movement. The left shoulder of this pattern was formed in January, followed by the head in late May, with the right shoulder developing since August. This structural development has caught the attention of traders and analysts who believe XLM could be on the verge of an XRP-style price increase.[embed]https://twitter.com/ali_charts/status/1955722778633757156[/embed]<h2>Key Resistance Levels and Price Targets</h2>The price of <a href="https://www.cryptoknowmics.com/news/stellar-xlm-at-risk-of-crash-after-losing-key-10-day-support/">XLM</a> is currently hovering just below a critical $0.50 neckline, a level that technical analysts view as the gateway to substantial growth. A successful and sustained break above this resistance, particularly with strong trading volume, is expected to trigger a sharp price increase. According to Fibonacci extension levels, a move past the neckline could propel XLM towards initial price targets of $0.71 and $0.77. Conversely, if the token fails to break through the $0.50 resistance, it could see a retest of lower support levels at $0.40 or even $0.36.

Stellar (XLM) Displays Bullish Signal with Inverse Head and Shoulders Pattern

Stellar (XLM) is currently facing significant downside risk, as the cryptocurrency has breached a crucial support level, raising concerns among investors and analysts. The primary indicator of this potential shift is XLM&#8217;s recent drop below its 10-day simple moving average (SMA), a level that had previously acted as a strong foundation during its July rally. &hellip; 
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Stellar (XLM) is currently facing significant downside risk, as the cryptocurrency has breached a crucial support level, raising concerns among investors and analysts. The primary indicator of this potential shift is XLM's recent drop below its 10-day simple moving average (SMA), a level that had previously acted as a strong foundation during its July rally. This loss of support suggests a weakening in buying momentum and a potential transition towards a short-term downtrend.<h3>Technical Indicators Point to Bearish Shift</h3>[embed]https://twitter.com/ali_charts/status/1950004095835918685[/embed]The bearish sentiment is further reinforced by several key technical indicators. The candle that broke the 10-day SMA closed with notably higher selling volume compared to previous sessions, indicating increased selling pressure. Chart analyst Ali Martinez underscored the bearish implications of <a href="https://www.cryptoknowmics.com/news/stellar-xlm-leaves-xrp-behind-with-stunning-63-weekly-surge/">XLM</a> trading below this moving average.Adding to the concerns, the Bull-Bear Power (BBP) indicator has turned negative, registering a value of -0.0182, with the formation of red bars signaling that sellers are gaining control and market momentum has cooled. If the BBP continues to remain below the zero line, it could foreshadow sustained downward pressure on XLM's price.<h2>Critical Price Levels to Watch</h2>As of press time, XLM is trading at $0.43, having experienced an almost 6% decline on the day and an approximate 8% drop over the past seven days. While some analysts, such as Javon Marks, maintain an optimistic outlook for substantial upside if key resistance levels are overcome, others, like Peter Brandt, advise caution. Brandt emphasizes that XLM must hold above its April low of approximately $0.22 and decisively close above $1 to avoid remaining trapped in a prolonged range-bound movement. The price zone between $0.42 and $0.45 is identified as a critical decision point; a strong push above $0.45, backed by significant volume, could propel XLM back towards $0.50, whereas failure to do so might lead to further selling pressure.

Stellar (XLM) at Risk of Crash After Losing Key 10-Day Support

While XRP has captured recent headlines with its notable price gains, another major cryptocurrency, Stellar (XLM), has quietly, yet powerfully, outperformed it. Over the past seven days, XLM has witnessed an impressive surge of 63%, significantly outpacing XRP&#8217;s equally commendable 39% rise during the same period. This stark difference in performance has positioned Stellar as &hellip; 
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While XRP has captured recent headlines with its notable price gains, another major cryptocurrency, Stellar (XLM), has quietly, yet powerfully, outperformed it. Over the past seven days, <a href="https://www.cryptoknowmics.com/news/stellar-xlm-rallies-above-0-10-eyes-0-12-target/" target="_blank" rel="noopener">XLM</a> has witnessed an impressive surge of 63%, significantly outpacing XRP's equally commendable 39% rise during the same period. This stark difference in performance has positioned Stellar as a standout performer in the broader cryptocurrency market.<h2>XLM Leads the Top 100 Race</h2>[embed]https://twitter.com/JoelKatz/status/1829660229199675460[/embed]According to market data, Stellar (XLM) currently holds the distinction of being the best-performing token within the CoinGecko top 100 cryptocurrencies on a weekly basis. This highlights XLM's strong momentum and investor confidence in its recent trajectory. Despite XRP's robust gains, it does not even rank among the top five best-performing tokens, underscoring XLM's exceptional run. This divergence in performance has led many investors to shift their focus towards Stellar, recognizing its superior short-term returns.<h3>The XRP-XLM Connection: A Tale of Two Tokens</h3>The outperformance of XLM over XRP is particularly interesting given their historical association. Stellar was co-founded by Jed McCaleb, who was also a co-founder of Ripple. Due to this shared origin and their similar focus on cross-border payments, many investors have traditionally grouped these two tokens into the same "mental basket." This perceived connection means that strong performance from one can often draw attention to the other, though in this instance, XLM has clearly established its own formidable momentum.As the cryptocurrency market continues its dynamic shifts, XLM's recent performance serves as a powerful reminder that even established leaders can be outshone by tokens demonstrating aggressive growth. For investors seeking high-percentage gains, Stellar's recent surge has certainly made it a cryptocurrency to watch closely.