Stellar (XLM), a decentralized peer-to-peer network, is igniting interest from investors and analysts as a bull chart pattern signals the altcoin could be making preparations for a major price trajectory. According to data posted today by market analyst Ali Martinez, XLM has broken out of a bullish flag pattern, a move that could push the token to the $0.578 target. This projection stems from the setup of this bull flag pattern on the token’s trading chart, hinting that XLM could soon witness a significant upturn momentum.
Stellar Eyes 14.1% Rally to $0.578 after Bull Formation
As per the technical analysis reported by Ali, Stellar is attracting the attention of crypto traders after breaking out of a consolidation phase that recently made the asset trade in sideways movement for weeks. The emergence of the breakout indicates a rejuvenated purchasing frenzy and positions XLM for what could be a significant upswing.
The breakout signals a crucial investor sentiment, as buyers enter the market, trying to push XLM past major resistance zones. Stellar is now standing above significant short-term support levels, acknowledging that the breakout has real market buyers. This emergence of the bull formation comes after a phase of sideways corrections that made traders concerned about when Stellar would initiate the next big movement. Provided that XLM holds its position above the breakout region, the strength could push its value towards the aspired $0.578 target level.
What Drives Stellar’s Bullishness?
XLM has been trading in a tight range, holding between a low of $0.3631 noted on August 3rd to a high of $0.4533 on August 13th to today’s $0.4069. With this consolidation phase, its price has been down 10.3% and 12.1% over the past week and 30 days, respectively.
On-chain data continues to show a bullish outlook with Stella’s active business wallets reaching an ATH of 9.69 million. This milestone highlights that whales (institutions) continue broadening their positions even as XLM trades in consolidation. Traditionally, an increasing number of whale wallets has been associated with enthusiasm for long-term price surge and eagerness to hold on to tokens through market fluctuations.
Another important factor pointing to XLM’s upcoming bullishness is the growth of Stellar’s TVL. Its total value locked has risen from $87.85 million noted on July 7th, 2025, to the current high of $146.99 million as of today, August 18, an indicator that institutional adoption is rising. With the identified significant bull formation, XLM’s position looks favourable. The altcoin could enter a new uptrend period, potentially climbing toward the $0.578 target as indicated by the bullish flag pattern breakout.
