Key takeaways
- XLM’s value has risen by 12% in the past 24 hours, outperforming the broader cryptocurrency market.
- This increase comes with open interest reaching $261 million.
XLM extends its weekly gains
Stellar’s XLM attracted renewed buying interest on Tuesday after posting strong gains at the start of the week. XLM price rose by more than 11%, bringing the asset closer to key resistance levels that could determine the next phase of the price movement.
The rally is supported by improving derivatives and on-chain metrics, including rising open interest, increasing trading volumes, and positive funding rates, all of which indicate growing market participation and strengthening bullish sentiment.
Data from Queen Glass It shows a noticeable increase in derivatives activity for both cryptocurrencies.
XLM’s open interest has risen to $261 million. Rising open interest is generally viewed as a sign that new capital is entering the market and that traders are increasing their exposure to the asset.
The increase indicates that investors are bracing for further upside as momentum improves across the broader cryptocurrency market.
Funding rates have also shifted in favor of bulls. CoinGlass data shows that XLM’s funding rate reached 0.0061% on Tuesday.
Positive funding rates indicate that long positions are willing to pay a premium to maintain bullish bets, which often reflects growing confidence in rising prices.
On-chain activity provides additional support to the bullish outlook. According to Santiment, Stellar trading volume has risen to $879.25 million from just $153 million over the past few days.
The sharp rise in activity signals renewed investor interest in the XLM ecosystem as prices recover from recent lows.
Technical Outlook for the Stars: Momentum continues to improve
XLM is trading near $0.227 on Tuesday, maintaining a constructive technical setup after bouncing from last week’s correction.
The token remains above the key support area formed by the 61.8% Fibonacci retracement level near $0.200 and the 200-day EMA near $0.199.
Additional support comes from the 50-day and 100-day EMAs at $0.185 and $0.182, respectively.
The RSI is currently near 71, indicating healthy momentum without entering overbought territory. Meanwhile, the MACD continues its upward trend, indicating that the downward pressure is gradually weakening.
If the rally continues, immediate resistance will appear at the $0.237 level, with additional supply zone at the $0.260 area.
However, if the downtrend returns, immediate support lies at the $0.200 psychological level.
A daily candle break below this level may expose more demand areas at $0.185 and $0.177 in the near term.
A break above $0.237 could pave the way for a stronger move higher, while stability above the $0.200 support area remains crucial to sustain the current bullish structure.
