The projection comes as the asset shows signs of stabilization following months of sideways movement, with the asset currently consolidating near the $0.31–$0.32 zone.

XLM’s Long-Term Chart Structure Signals Accumulation

The long-term chart of Stellar reflects the cryptocurrency’s volatile yet resilient trajectory. Since its inception, the token has soared over 11,580%, marking three major bullish cycles punctuated by steep corrections.

Each rally was followed by profit-taking phases, underscoring the asset’s cyclical nature and sensitivity to broader market sentiment. Despite these fluctuations, Stellar has maintained steady growth across the years, a testament to its endurance in a competitive digital asset landscape.

Source: X

Currently trading near $0.3159, the memecoin has entered a prolonged consolidation period after retracing from its yearly high of $0.52. This price behavior suggests an accumulation phase, as both buyers and sellers await a decisive catalyst.

The flattening structure indicates a tightening supply zone, often a precursor to major breakouts in historical cycles. If the pattern repeats, analysts believe Stellar could be setting the stage for a significant upward move in the coming months.

Market Metrics Reflect Growing Stability

According to BraveNewCoin data, Stellar’s market capitalization stands at $10.13 billion, with a 24-hour trading volume of $173.4 million. The asset remains ranked 19th globally, signaling continued relevance among large-cap cryptocurrencies.

The modest 1.10% daily gain suggests that momentum is stabilizing, while subdued volatility across major exchanges indicates reduced speculative trading.

Source: BraveNewCoin

This moderation in trading activity supports the theory of base formation, as short-term traders exit and longer-term holders accumulate. Historically, periods of low volatility in XLM have preceded large directional moves, a pattern consistent with current metrics. If market sentiment continues to improve, the next breakout could target the psychological $1.00 level before extending toward the projected $2.00 cycle peak highlighted by analysts on X.

Technical Indicators Point to Reversal Potential

At the time of writing, XLM’s Bollinger Bands on the daily chart remain narrow, with price oscillating between lower support at $0.28 and resistance near $0.35. This compression typically signals that volatility is about to return. Meanwhile, the Relative Strength Index (RSI) reads 37.69, suggesting that Stellar is approaching oversold conditions. The RSI’s flattening near the 40 level reflects waning bearish momentum, a signal often preceding recovery moves.

Source: TradingView

If Stellar rebounds from the lower band and reclaims the midline, it could trigger a broader uptrend toward $0.40–$0.43, aligning with the upper band boundary. A confirmed breakout above $0.38 would likely attract renewed bullish volume, potentially accelerating momentum toward the $1.00 mark in the medium term.

While short-term risks remain, the technical setup, historical accumulation patterns, and improved stability in market metrics collectively suggest that Stellar could be on the verge of a major cycle move, one that might validate the bullish $2 target projected by analysts as market conditions evolve.

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Filed under: Bitcoin - @ October 21, 2025 8:20 pm