- Stellar (XLM) is showing strong bullish potential as open interest in its futures contracts surged, reflecting growing investor confidence ahead of a possible breakout.
- Technical indicators, including an ascending triangle pattern, suggest that XLM could rally by up to 15% if it breaks the key resistance level at $0.2460.
Stellar (XLM), a notable rival to XRP, is showing strong bullish potential as investor confidence surges amid a major spike in open interest. Despite recent volatility, market indicators suggest that XLM might be on the brink of a breakout, with its price movements and futures data signaling a potential rally.
Open Interest Surge Sparks Investor Optimism
In the past 24 hours, open interest in Stellar surged by 2.96%, with a 2.23% increase recorded in just the last four hours. According to CoinGlass data, 483.42 million XLM—worth approximately $117.68 million—are currently committed to open interest contracts. This metric reflects the total number of unsettled futures contracts and is widely regarded as a gauge of market sentiment.
The increase in open interest highlights growing confidence among investors, many of whom are positioning themselves in anticipation of a bullish breakout. Such moves are typically associated with significant price action, particularly when they coincide with bullish technical indicators.
Technical Patterns Point to Breakout Potential
At the time of writing, Stellar is trading at $0.2429, down 0.67% over the last 24 hours. However, the altcoin has posted a solid 6.04% gain over the past seven days. This positive momentum has drawn attention to a developing ascending triangle pattern—a bullish chart formation that often signals the potential for upward movement once resistance is breached.
The key resistance level for XLM currently sits at $0.2460. A successful breakout above this threshold could see the price gain further traction, potentially leading to a sustained rally. Crypto analyst Ali Martinez noted that this triangle formation could trigger a 15% price increase, provided market momentum continues building.
From Sell-Off to Rebound: Stellar’s Resilience
Just days ago, XLM experienced a significant sell-off, trading as low as $0.2368 and sparking concern among holders. Yet the quick recovery and ongoing price consolidation have helped restore optimism. This rebound suggests that the coin has absorbed recent market shocks and may now be poised for a healthier trajectory.
In conclusion, Stellar’s growing open interest, combined with bullish chart patterns and strong investor sentiment, positions it as a coin to watch closely. If the token manages to overcome key resistance levels, a significant upward move could be on the horizon.
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