Stellar is forming a bullish inverse head and shoulders pattern on its daily chart while the network's real-world asset value has climbed nearly 11% since late December to approach $986 million, though the token remains down about 34% over the past three months.
What Happened: Bullish Pattern Forms Amid Network Growth
The inverse head and shoulders structure began taking shape after Dec. 31, when XLM rallied nearly 30% before correcting between Jan. 6 and Jan. 9.
The left shoulder formed in November, the head printed in late December, and the recent pullback created the right shoulder.
Stellar's RWA value rose from approximately $890 million on Dec. 31 to roughly $986 million in early January. The neckline sits about 12% above current prices, and a daily close above $0.254 would confirm the breakout pattern.
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Why It Matters: Capital Flows Signal Accumulation
Technical indicators suggest capital continues flowing into the network despite recent price weakness.
Chaikin Money Flow has remained positive even as prices declined, signaling steady inflows rather than distribution.
The Money Flow Index shows buyers consistently stepping in on dips.
Between late November and late December, XLM made lower lows while MFI held higher levels, a classic bullish divergence.
On the downside, $0.223 serves as the first support level to watch, while a close below $0.196 would invalidate the pattern entirely. A confirmed breakout projects a 30% move toward $0.330.
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