A large-scale bullish chart for Stellar (XLM) has appeared! Legendary trader: must decisively break through $1 to confirm the reversal.

The crazy pump of Stellar (XLM) has become the focal point of the crypto assets market, soaring over 60% in the past 7 days, with today's (18th) European early trading price slightly below $0.50. Legendary trader Peter Brandt believes that XLM has formed the most bullish chart at present and must decisively break through $1 to confirm the final reversal.

Brandt shared the monthly chart of XLM, pointing out a large bullish pattern that has been forming over the years. He called it "possibly the most bullish potential among all charts," but also noted two key conditions: XLM must stay above the April lows and ultimately must close above 1 dollar to confirm a true breakout.

He wrote in the post: "The most bullish chart might be XLM. XLM must stay above the April lows and decisively close above $1. Until then, the chart will remain range-bound."

Why is the XLM chart so strong?

The monthly chart clearly shows an inverse head and shoulders pattern, which is one of the most reliable bottom patterns in technical analysis. This pattern can be traced back to 2018, reflecting years of accumulation.

The "left shoulder" formed during the pullback period in 2019, the "head" formed during the crash in March 2020, and the "right shoulder" formed from the end of 2022 to 2023. This slowly constructed bottom pattern usually indicates an explosive upward trend.

The neckline of this massive formation is slightly below $1—this key level has acted as resistance in previous rebound attempts. The price of XLM is currently still below this neckline, but the monthly closing price is rising and has reclaimed the major moving averages. The 8-month and 18-month moving averages are both showing an upward trend, indicating a shift in the long-term trend.

Another key detail on the chart is that XLM has broken out of a multi-year range. From 2022 to early 2025, XLM mostly hovered in a narrow range between $0.08 and $0.20. Currently, this consolidation phase has ended, and the price is continuing to rise, breaking through previous lows.

The low point in April 2025 is about 0.22 USD, which is currently the most important support level on the chart. If the bulls continue to hold this line, the structure will remain stable. If XLM ultimately closes above 1 USD on a monthly timeframe, it will confirm its breakout from nearly seven years of range.

(Source: X)

What will happen after 1 dollar?

A closing price above 1 dollar could change the market landscape. Since 2018, this price level has acted as a ceiling. Once it is breached, it could turn into a support level and trigger a larger rebound. Historical resistance levels often become launch points after being broken, especially in high-timeframe contexts like this.

This breakthrough will also complete a significant head and shoulders formation. Based on the height of this structure, the technical target price may be above $1.70 or even $2.00 — this trend will reestablish XLM as a leading altcoin.

XLM is showing strong momentum. In recent weeks, its performance has outpaced many of its peers and has become one of the clearest long-term reversal patterns in the Crypto Assets space. The price has broken through two key moving averages, momentum is strengthening, and the market structure is displaying an upward trend.