Stellar (XLM) has been gaining strong momentum in recent days, trading at $0.52 and up 127% on a weekly basis. This rally shows that investor confidence in XLM is increasing and market activity is accelerating. Its current price puts XLM close to its all-time high of $0.91 set in 2018.
XLM’s open interest reached an all-time high of $291 million last Saturday. While open interest measures contracts that are still unclosed or unsettled, increases encourage new money to enter the market, which in turn encourages price appreciation. This provides confidence that XLM’s uptrend is sustainable and suggests that the price could rise further.
The uptrend in XLM’s price is also confirmed by the Average Directional Index (ADX). Currently, the ADX value is at 68.93, indicating an extremely strong uptrend. The ADX is a tool that measures the strength of a market trend, and a reading of 68.93 suggests that XLM’s current uptrend could continue.
XLM is currently trading just below the critical resistance level at $0.58. A break above this level could trigger a rally towards $0.71. Sustained buying pressure could allow XLM to retest the all-time high of $0.91.
However, if buyers run out, XLM’s price could drop to $0.47, which could negatively impact the current positive outlook. It is important for investors to be careful and monitor these levels.