- XLM surged 10.34% after breaking out of an inverse head and shoulders pattern, setting sights on $0.39.
- Open Interest rose 24% and Funding Rates flipped positive, confirming growing long exposure among traders.
After struggling to make considerable gains on its price charts, Stellar [XLM] is finally waking up. On the daily charts, the altcoin has surged from a local low of $0.258 to a monthly high of $0.305.
In fact, as of this writing, XLM traded at $0.3008, posting a 10.34% daily gain. Naturally, this breakout has triggered renewed bullish interest, especially in derivatives.
Inasmuch, XLM’s trading volume surged by 214.09%, reaching $362 million. On the Futures market, Stellar’s Open Interest rose 24% to $183.7 million.
This price pump has left analysts eyeing a sustained rally.
One of them is popular crypto analyst Ali Martinez, who has suggested a potential rally to $0.39, citing an inverse head and shoulder pattern.
Source: X
According to Martinez, XLM has broken out of an Inverse Head and Shoulders pattern, which often signals a trend reversal. With Stellar retesting $0.24 as support, the right shoulder appears complete.
He now projects a rally toward $0.39—provided buyers maintain control.
Is Stellar ready to rally?
According to AMBCrypto’s analysis, Stellar is experiencing strong upward momentum amidst rising demand.
Looking at Stellar’s Relative Strength Index (RSI), it has surged to complete a bullish crossover over the past day. The altcoin’s RSI has risen to 66.45 while its MA remains at 54, signaling a higher buying pressure.
Therefore, buyers are currently dominating the market with the total displacement of sellers.
Source: TradingView
This buying pressure has strengthened the altcoin’s price upward momentum.
On top of that, MACD surged to 30.43 after a bullish crossover two days ago, confirming market strength.
These buyers have especially dominated the futures market, with Taker Buy dominant in the Futures Taker CVD. This suggests that buyers are mostly getting into the market to take strategic positions, awaiting the next move.
On weekly timeframes, sellers are absent as per the futures CVD.
Source: CryptoQuant
Futures traders go long as sentiment shifts
When we look at the Funding Rates Aggregated by Exchange, it has turned positive across all exchanges over the past day.
A turn to positive territory indicates a shift in market sentiment, with investors getting into the market to take long positions. Thus, long positions are currently dominating the market.
Therefore, the buyers dominating the futures market, as observed above, are mostly going long, reflecting strong bullish sentiment among Stellar buyers.
Source: Coinalyze
Simply put, Stellar is currently experiencing strong bullish sentiment.
The growing bullishness has seen the upward momentum strengthen as buyers retake the market. These conditions position XLM for major gains.
If prevailing sentiment holds, Stellar will find the next significant resistance level around $0.34.
However, having said that, if short-term holders use this rally to exit breakeven positions, XLM could drop to $0.281 or even $0.25.
Still, with momentum and structure on the bulls’ side, the upside case remains strong, at least for now.
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