Stellar (XLM) has been progressing steadily in recent days, currently trading at $0.52 — up 127% in the past week.
The buying pressure is growing stronger, pushing XLM closer to recovering its all-time high of $0.91, achieved last in January 2018.
The upward momentum of Stellar continues to be strong
The increasing open interest of XLM indicates high market activity and confirms strong investor confidence. On Saturday, the open interest of this token reached an all-time high of $291 million.
Open interest measures the total number of outstanding contracts in the futures market or options that have not been settled or closed. When this indicator rises during a price increase, it signals that new money is entering the market. This reinforces the bullish trend and indicates strong conviction in the market.
This trend in the XLM market shows that traders are increasingly confident in the sustainability of the price rally, which could drive its price upward.
XLM Open Interest. Source: Santiment
Furthermore, measurements from its Average Directional Index (ADX) also confirm this optimistic view. At the time of writing, XLM's ADX has risen to 68.93.
ADX assesses the strength of the market trend, ranging from 0 to 100. An ADX reading of 68 indicates a very strong upward trend. This high value suggests that the current trend of XLM is likely to continue.
XLM ADX. Source: TradingView
XLM Price Prediction: The token could reach its all-time high
XLM is currently trading below a key resistance level at $0.58. Overcoming this important price level could pave the way for a rise to $0.71. Continuous buying at this level could position XLM to reclaim its all-time high of $0.91.
XLM Price Analysis. Source: TradingView
However, if buyer exhaustion occurs, XLM's price could drop to the support level at $0.47, negating this optimistic outlook.
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