Stellar Head and Shoulders Pattern, XLM Price to $0.7?

• XLM crypto is forming the right shoulder of a head-and-shoulders pattern, indicating bullish trends.
• XLM may hit $0.7 soon based on bullish technical indicators, growing adoption, and partnerships.
• PI Network set to benefit from Stellar Protocol 23, scheduled to go live on September 3

The Stellar (XLM) crypto price is currently down on the daily chart. However, the XLM price outlook appears bullish in the near term, based on the formation of an inverted head-and-shoulders pattern.

Some market players suggest XLM could rally towards $0.7 following ongoing price consolidation.

Amid XLM price analysis, expectations are high for the Stellar Protocol 23 upgrade in September 2025.

XLM Crypto H&S Setup and Implications

Popular onchain analyst Ali Martinez noted that XLM is forming the right shoulder of a head-and-shoulders pattern on the price chart.

In an X post, Martinez shared a screenshot of the XLM/USD daily chart on Coinbase, highlighting the left shoulder, the head, and the right shoulder.

A head-and-shoulders pattern predicts a bullish-to-bearish trend reversal. The pattern appears as a baseline with three peaks, with the outside two similar in height and the middle the highest.

The pattern can appear in two forms, a standard and inverse head-and-shoulders. The former signals a bearish outlook, while the latter suggests a potential price increase.

According to the chart released by Martinez, XLM is forming an inverse head-and-shoulders pattern on its daily chart.

If XLM completes the right shoulder and breaks above the neckline between $0.48 and $0.52, it could signal a bullish reversal.

At the time of writing, the Stellar price was down 3.3% in the last 24 hours to $0.4127. Investor activity remained low, as trading volume decreased by 22% to $340 million.

In the short term, the XLM price may be influenced by broader market moves and investor sentiment.

Can XLM Price Hit $0.7?

Analysts suggest a possible target of $0.71 for XLM, aligning with the 1.618 Fibonacci extension.

Currently, XLM is facing a short-term price correction after its 100% rally in July from $0.25 to $0.50.

The price dropped to around $0.426 after breaking short-term support, aligning with typical market behavior post-bullish runs.

In the crypto market, pullbacks often test key support levels, shaking out weak hands before the next breakout.

Also, the drop below short-term support suggests XLM is testing a critical zone. If $0.426 holds as a new support, it could signal a healthy consolidation.

This phase could precede a breakout towards $0.7. Meanwhile, a crypto expert earlier predicted that XLM could hit $1.

Additionally, price drawdowns often attract accumulation from smart players who buy the dip.

Thus, if XLM holds key support and volume picks up, it could signal interest from both retail and institutional players.

Besides, the Stellar ecosystem remains robust, with a growing adoption in cross-border payments and partnerships. These long-term drivers support the bullish narrative.

Stellar recently became the fourth-largest blockchain in RWA tokenization, holding over $440 million in tokenized assets.

This achievement is largely due to its partnership with Franklin Templeton, which manages over $1.5 trillion in assets.

Pi Network to Benefit from Stellar Protocol 23 Upgrade

Amid the XLM price analysis and projections, crypto enthusiast Anderson Ninna revealed that the Stellar Protocol 23 is scheduled to hit mainnet on September 3, 2025.

Protocol 23 upgrade introduces key upgrades to smart contract performance on the Stellar network.

This update also caters to areas like token functionality, scalability, and other consensus improvements for the blockchain network.

Ninna claims Protocol 23 could be a game-changer for the Pi Network adoption and the value of PI coin. Notably, the Pi Network uses the Stellar Consensus Protocol (SCP) and Stellar Core infrastructure.

Therefore, upgrading Stellar to Protocol 23 could enable Pi to support advanced smart contracts, potentially boosting its Web3 capabilities and adoption.

godfrey mwirigi