• Stellar (XLM) fell 2.03% in the last 24 hours and 12.21% over the past week.
• The price is trading at $0.3978, with daily volume down 5.4%.
• Technical charts signal a potential bullish continuation if resistance is cleared.
• Open interest and sentiment reflect cautious optimism from traders.

Stellar (XLM) struggles as the wider crypto market faces downward pressure. Over the past 24 hours, XLM slipped by 2.03%, with a weekly loss of 12.21%. The token is trading at $0.3978, with its 24-hour trading volume dropping by 5.4% to $311.6 million.

Despite this decline, Stellar maintains a sizable market capitalization of $12.45 billion, highlighting its strong standing within the sector.

While the broader market reflects a bearish mood, XLM’s price structure shows signs of resilience. Technical analysis points to a potential shift in direction, as the asset continues to build momentum within a bullish flag setup. This leaves traders weighing short-term weakness against longer-term opportunities.

Also Read: Stellar (XLM) Price Holds $0.41: Institutional Adoption Surges, Eyes $0.77 Breakout

Technical Indicators Signal Bullish Continuation Setup

Crypto analyst Jonathan Carter highlighted that Stellar has completed a breakout from a larger bullish flag pattern. This breakout marked a shift from its previous downtrend, and now the price action is forming a smaller bullish flag on the two-day timeframe. Such formations often suggest continued upward movement once the resistance is cleared.

Currently, XLM is hovering just below the breakout threshold at $0.3971. A decisive push above $0.41-$0.42 could confirm another upward leg. The 100-day simple moving average sits comfortably at $0.3098, underlining the strength of current momentum.

Meanwhile, the RSI has cooled to neutral levels around 50 after previously entering overbought territory, showing the market may be recharging for another move higher.

However, resistance stands at $0.45, followed by $0.57, $0.80, and $1.00. On the downside, key support lies at $0.33, $0.255, and $0.21. The relatively light resistance between $0.45 and $0.57 leaves room for potential rapid gains once the $0.45 ceiling is surpassed.

XLM Market Sentiment Shows Cautious Optimism

XLM’s derivative data support a guarded positive outlook. The XLM’s open interest stands at $312.37 million as a reflection of healthy interest. That OI fell by 1.49% implies a small decrease in active positions and short-term caution or marginal profit-selling.

The OI-weighted funding rate is currently at 0.0053%. This practically neutral setting is slightly bullish, as traders are not heavily shorting the asset. Such funding settings with stable open interest have been followed by price rebounds.

Although uncertainty remains in the broader crypto market, Stellar’s design implies that a reversal is possible if investors drive through current resistance. Speculators will be paying attention to a clear move through $0.42 with increasing volume as the next significant catalyst for momentum.

Also Read: Stellar (XLM) Surges 12% This Week: $0.7733 Next Milestone