Stellar (XLM) Price Prediction: Open Positions Surge 127%, Will It Hit a New All-Time High?

Stellar (XLM) has recently experienced a significant price pump, reaching its highest point in 5 months, making it one of the best-performing tokens in the market. Although increased trader confidence has driven this pump, there are concerns about altcoins overheating, which could affect the price movement in the coming days.

XLM traders are highly optimistic

The open interest (OI) for XLM has soared by 127%, reaching 346 million USD, up from only 160 million USD last week. Such strong growth in open interest indicates that investor participation is continuously increasing, which may be due to the "fear of missing out" (FOMO) mentality.

At the same time, the financing rate is also in the positive zone, which means that traders remain optimistic about the potential of XLM.

The increase in open interest (OI) indicates that market confidence is strengthening, which may prevent prices from falling significantly. However, this rapid growth may also lead to excessive expansion in the short term, so market participants should remain cautious.

The Chaikin Money Flow (CMF) indicator for XLM also shows strong capital inflows, indicating that funds are continuously pouring into the market. This upward trend reflects the positive sentiment of investors and the growing confidence in the long-term potential of Stellar.

However, historically, when the CMF exceeds 20, it is a warning signal of overbought conditions, which may lead to price adjustment.

As XLM continues to grow strongly, the risk of overheating rises, and it may soon enter a correction phase. Investors should closely monitor these technical indicators to detect early signs of price pullbacks.

(XLM CMF Indicator, Source: Trading View)

Will the XLM price continue to pump?

XLM price has pumped 13% in the past 24 hours, trading at approximately $0.442. This altcoin has increased by 68% this month, indicating a growing interest among investors.

However, as the price has just broken through the resistance level of 0.439 USD, further upward momentum is needed. If it falls below this resistance level, XLM may consolidate between 0.412 USD and 0.439 USD. If selling pressure increases, the price may retreat to 0.355 USD, forming a new support level.

If the bullish momentum continues into next week, XLM could approach the key level of $0.50.

Breaking above $0.50 will confirm that the bullish trend is still intact and strengthen the mid-term optimistic outlook. However, if market sentiment changes, alts may experience a pullback, negating the bullish outlook.

(Source: Trading View)