Key Takeaways:
Stellar’s XLM token gained 3.3 percent in the 24 hours leading up to 1:19 p.m. ET on Tuesday, outperforming a generally negative cryptocurrency market where 10 of the top 20 assets traded lower.
"Stellar is showing large whale orders with mostly neutral market metrics, reinforcing a bullish outlook," according to a recent summary from on-chain data firm CryptoQuant. The firm highlighted favorable conditions in spot markets as a primary driver for the token's relative strength.
The move higher is supported by a combination of surging on-chain activity and bullish positioning in derivatives markets. Stellar processed over 14.19 million transactions on Thursday, its highest in the past quarter, according to the blockchain tracker Chainspect. On the derivatives front, data from Coinglass shows XLM’s OI-Weighted Funding Rate flipped positive on Monday, reaching 0.0032 percent by Tuesday, which suggests traders are willing to pay a premium for long exposure. Futures Open Interest also rose to $94.73 million, up from $82 million last week.
This rally brings XLM to a critical technical juncture that traders are watching closely. The token is currently testing a resistance zone near $0.179-$0.180, a level that has capped recovery attempts since February. A decisive daily close above this ceiling could signal a breakout, with the next significant resistance targets at the 23.6% Fibonacci retracement level of $0.201 and the 200-day EMA near $0.215. On the downside, initial support is located at the 50-day EMA around $0.165. The token's outperformance comes as Japan's Rakuten Wallet recently listed XLM, opening it to its 44 million loyalty members, and as the broader DeFi sector remains unsettled after a $292 million exploit on KelpDAO.
This article is for informational purposes only and does not constitute investment advice.
