Stellar (XLM) posts a 7.96% daily gain amid rising momentum.

Weekly performance remains steady with a modest 0.46% increase.

The cup and handle formation suggests a bullish continuation setup.

Derivatives data highlights stronger market participation and optimism.

Stellar (XLM) is gaining traction in the altcoin sphere, driven by renewed interest and Bitcoin’s upward momentum. Over the last 24 hours, the token advanced by nearly 7.96%. On the weekly chart, it recorded a slight 0.46% rise, reflecting steady buyer support.

At the time of writing, XLM is trading at $0.4247, with a 24-hour trading volume climbing to $467.1 million. This represents a sharp 90.91% increase from the previous day. Its market capitalization now stands at $13.31 billion, showing the growing interest surrounding the asset.

The rebound coincides with a spike in trading activity, signaling renewed investor confidence. Such developments are crucial for sustaining price momentum, particularly after periods of consolidation.

Also Read: XLM Price Prediction: Breakout Above $0.42 Could Fuel Rally Toward $1.00 Target

XLM Technical Setup Points to Further Upside

The daily chart for Stellar outlines a classic cup and handle formation, a well-known bullish continuation pattern. The rounded base of the cup, formed between December 2024 and May 2025, reflected a gradual shift in sentiment from bearish to bullish. The handle phase, which played out between May and late June, consolidated the gains before a decisive breakout above resistance at $0.37.

XLM is now trading above this breakout level at $0.4249. If the pattern unfolds as projected, the token could target $0.55 in the near term, with further potential toward $0.66.

Holding above the $0.42–$0.43 support range will be critical to maintaining this bullish structure. Momentum indicators add strength to the positive outlook. The Ichimoku Cloud shows price action holding above the cloud, signaling continued bullish momentum.

RSI and MACD Show Early Recovery Signs

The Relative Strength Index (RSI) is at 43.44, below the neutral 50 level. Although this reflects lingering bearish-to-neutral momentum, its gradual rise signals potential recovery. A push beyond 50 would confirm stronger bullish momentum.

The MACD also indicates a shift in sentiment. A recent bullish crossover took place, as the MACD line crossed above the signal line. Although the histogram is slightly negative, the fading red bars indicate weakening bearish pressure. Together, these indicators point toward the early stages of a possible upward continuation.

Derivatives Data Reinforces Market Confidence

Open interest in Stellar’s derivatives market jumped to $342.67 million, which indicates an increase of 10.98%. Such an upsurge indicates increased trader involvement and faith in the ongoing trend. Increased volume also follows such movements and implies increased interest during volatility sessions.

The OI-weighted funding rate is at 0.0061%, which shows a gentle bullish bias. That implies the longs are funding the shorts, but not through aggressive leverage. Such evenly balanced conditions imply healthy sentiment and the possibility of a sustainable rally if these levels are maintained.

Also Read: XLM Rebounds Amid Choppy Markets, Eyes on $0.50–$0.55 Range

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Filed under: Bitcoin - @ August 23, 2025 9:00 am