Stellar Price Rises 7% Amid Rising Retail Demand, XLM Bulls Target $0.25 Resistance

Highlights:

• The Stellar price has soared 7% to trade at $0.17 today.
• The derivatives market shows renewed interest as the open interest spikes by $28%.
• The technical outlook shows a positive mood, as XLM bulls target $0.25 resistance soon.

The Stellar (XLM) price is above the key resistance zone, currently exchanging hands at $0.17, marking a 7.75% today. Moreover, a better mood in the derivatives market and a positive technical picture point to an extension of the upside of XLM price in the short run.

XLM Price Derivatives Market Outlook

The CoinGlass data shows that the Open Interest (OI) in Stellar is up to $116.69 million on Wednesday. This is compared to $84.64 million on Monday. The OI is rising, suggesting an influx of new money into the market, which could encourage the current XLM price boom.

Also, the funding rates of Stellar turned positive on Monday, currently at 0.0092% on Wednesday. In other words, the longs are paying the shorts. Often, the Stellar price has shot up when the funding rates have reversed from negative to positive.

Besides the bullish derivatives record, Crypto intelligence tracker DefiLlama reports that the Stellar stablecoin market capitalization has risen to a new all-time high of $385.22 million on Wednesday. This comes after spending much of January at $181.12 million.

The bullish performance is further supported by the capitalization of the stablecoin market. Notably, the growing network activity indicates the increasing confidence and interest in the Stellar ecosystem.

XLM Bulls Target $0.25 Resistance

Looking at the daily price chart, XLM price has broken through a key resistance level. The token is currently trading at $0.17, up from recent lows near $0.15 and far above its 50-day simple moving average (SMA) at $0.16.

The next critical resistance comes at $0.25, which is the 200-day SMA and marks a region where selling pressure could increase. If XLM can break above this area on strong volume, technical traders expect a run towards $0.30. Conversely, initial support sits at $0.16 (50-day SMA) with further downside protected by the recent rally base near $0.15. Any short-term dips towards these zones are likely to attract new buyers in the market.

Momentum indicators strongly favour the bulls, as the Relative Strength Index is at 61.91. This shows that price is rising rapidly, but has not yet reached extreme overbought zones. The MACD is bullish, with both lines moving into positive territory, signalling that buyers have control. Further, investors are at liberty to rally behind XLM.

In the meantime, if the $0.16 support zone holds, the XLM price could continue with the rally in the short-term. In such a case, the bulls could target the $0.21-$0.25 resistance zones. A break above the $0.25 region will call for more upside towards $0.30. Conversely, if Stellar fails to hold above $0.25, the price may retrace towards the $0.16 support zone, where buyers will watch for renewed support.