Stellar rallies as rising OI and trading volume signal growing bullish momentum

Key takeaways

• XLM is up 12% in the last 24 hours, outperforming the broader crypto market.
• The rally comes as Open Interest hits $261 million. 

XLM extends weekly gains

Stellar’s XLM attracted renewed buying interest on Tuesday after posting strong gains at the start of the week. XLM surged over 11%, bringing the asset closer to key resistance levels that could determine the next phase of its price action.

Supporting the rally are improving derivatives and on-chain metrics, including rising open interest, increasing trading volumes, and positive funding rates, all of which point to growing market participation and strengthening bullish sentiment.

Data from CoinGlass shows a notable increase in derivatives activity for both cryptocurrencies.

XLM’s open interest climbed to $261 million. Rising open interest is generally viewed as a sign that new capital is entering the market and that traders are increasing exposure to the assets.

The increase su...