Stellar (XLM) has been one of the standout gainers in the recent altcoin rally. After reaching a high of $0.5154, the price faced a slight pullback due to a dip in the crypto market when Bitcoin briefly dropped to $116,000. But with Bitcoin back on track and climbing again, XLM is showing strong signs of life.
During the correction, XLM dropped to a low of $0.43 but quickly bounced back from that level. Right now, the coin is trading at $0.4629, slightly down by 1% over the last 24 hours, according to CoinMarketcap data.
XLM price chart | Source CoinMarketcap
However, the bigger picture is impressive; the token has gained around 72% over the past week. Its 24-hour trading volume has dropped by 31% to $1.41 billion, and the market cap stands at $14.4 billion.
XLM breakout from bullish pattern fuels optimism
From the technical point of view, XLM has broken out of a cup and handle pattern, a setup that often signals more gains ahead. This pattern started forming earlier this year, with the rounded “cup” shaping up between January and May, followed by a small dip in June that formed the “handle.”
After weeks of consolidation, the price finally broke out above $0.34 and quickly moved higher.
XLM technical analysis chart | Source Tradingview
Now, the focus is on two key levels, $0.50 and $0.55. If the token can break past these zones, it could head toward the next target at $0.66. This target is based on the depth of the cup pattern and is considered realistic if current momentum continues.
Overall, the price chart is showing a solid uptrend, and the recent breakout adds weight to the idea that Stellar could climb even higher.
Derivatives data support the move
According to data from Coinglass, market activity in XLM futures is also heating up. Open interest has jumped to $478 million, showing that more traders are betting on further price increases. At the same time, 24-hour trading volume in derivatives has climbed to $2.69 billion.
XLM price, OI & volume chart | Source: Coinglass
Another good sign is the funding rate, which has turned slightly positive at 0.0090%. This means traders are willing to pay extra to hold their long positions, which usually reflects strong belief in a continued rally.
XLM funding rate trends | Source: Coinglass
Together, these numbers show that there’s growing interest in XLM from both short-term traders and long-term believers.
What to watch next
Even though XLM took a small dip in the last 24 hours, its rebound from $0.43 and weekly performance show that bulls are in control. Holding above $0.50 and breaking $0.55 would open the door to the $0.66 target.
With strong technical signs, rising interest in the futures market, and a confirmed breakout pattern, Stellar is well-positioned for another move higher, especially if market conditions remain favorable.