XLM price rockets 85% after downtrend breakout, targets $1.50

XLM price has surged over 85% in a week and could push toward $1 and $1.50 if bullish momentum continues.

Stellar (XLM) price exploded over 80% in the past week, breaking out of the descending channel that had constrained the price action since December last year. The breakout above the channels upper trendline occurred around the $0.26 level and coincided with a bullish double bottom pattern, with lows near $0.23 and a neckline at approximately $0.33. Since clearing that neckline, XLM price has rallied over 85%, exceeding the measured move target from the double bottom ($0.45) and confirming a strong bullish reversal.

The XLM price is now edging closer to the key resistance set by the January peak at $0.52, which aligns with the 0.236 Fibonacci retracement level from the previous macro swing high. A clean break above this zone could open the path toward the 1.618 Fibonacci extension near $1 if bullish momentum continues. Sustained buying pressure beyond that could ultimately propel XLM price toward the 2.618 extension at approximately $1.50, marking a full trend expansion from the prior cycle low.

However, with the RSI currently deep in overbought territory (above 86), some consolidation or pullback near the $0.52 resistance zone is likely before any further upside. If bulls manage to defend the breakout zone around $0.33–$0.36 as new support, it would reinforce the bullish case for these higher extension targets in the medium term.

XLM prices explosive rally appears to be driven by a mix of rising investor interest, ecosystem growth, and increased on-chain activity. Most notably, the network has seen a sharp rise in stablecoin supply, which surged to a record $647 million in mid-June — up from just $44 million earlier this year, according to DeFiLlama. The spike in stablecoin volume has been accompanied by a surge in futures open interest, which climbed to $345 million — the highest since January.