Stellar open interest jumps 127% to $346M, fuels bullish momentum in XLM

Stellar open interest has exploded by a staggering 127%, sending shockwaves through the crypto markets as traders wonder—can XLM defy the odds and hit a yearly high, or is a sharp correction looming?

In the last seven days, Stellar open interest soared from $160 million to $346 million, according to Coinglass.

This dramatic uptick marks one of the sharpest increases in recent memory for the altcoin and reflects growing investor confidence fueled by FOMO and bullish market sentiment.

Stellar open interest signals surging confidence

Stellar open interest rising 127% is more than just a number—it’s a psychological turning point for traders.

Open interest (OI), which measures the total number of outstanding futures contracts, is a key indicator of market participation. When OI increases in tandem with price, it typically signals strong conviction behind the rally.

“Such a sharp increase in open interest suggests that traders are not just speculating, but doubling down,” said Markus Thielen, Head of Research at 10x Research.

“This level of OI growth, combined with a positive funding rate, reflects a bullish bias that shouldn’t be ignored.”

Technical indicators flash bullish—but with a caveat

The Chaikin Money Flow (CMF) indicator is currently showing intense inflows for Stellar, adding weight to the bullish narrative.

The CMF measures buying and selling pressure by tracking volume and price over a given period, and when it rises above 0.20, it generally indicates strong bullish momentum.

That said, historically, when CMF enters such high territory, it also foreshadows possible corrections.

“Overbought indicators are starting to flash yellow,” noted Alex Krüger, macro economist and crypto analyst. “While we can’t deny the momentum, traders need to brace for potential whiplash.”

XLM price action: Charging toward resistance

Amid the Stellar open interest surge, XLM’s price has skyrocketed 21% in the past 24 hours, now trading around $0.436—just a hair under its critical resistance level of $0.439.

In July alone, XLM has gained a whopping 83%, making it one of the top-performing assets this month.

Still, analysts warn that resistance could spark a cooling-off phase. If XLM fails to break the $0.439 barrier, a consolidation phase between $0.412 and $0.439 may occur.

A drop below this zone could trigger a decline back to the $0.355 support level.

Will the rally sustain or fizzle out?

The question on everyone’s mind: Can Stellar open interest continue driving XLM upward?

If the current momentum holds, breaking above $0.439 could be just the beginning. A move toward $0.500 would not only mark a yearly high but also validate the current bullish trajectory.

However, crypto markets are notorious for sudden sentiment shifts. If market confidence wavers, the surge in Stellar open interest could backfire—turning into long liquidations and dragging the price down swiftly.

Another reason for optimism surrounding Stellar open interest is the increasing chatter about institutional entry.

With projects like MoneyGram, Circle, and other remittance platforms relying on Stellar’s blockchain infrastructure, long-term use cases are gaining traction.

“This isn’t just retail speculation. There are whispers of institutional hedging through derivatives, which often starts to show first in open interest data,” said Rachel Lin, former VP at Matrixport.

Final thoughts: Proceed with caution, but don’t ignore the signals

With Stellar open interest climbing at a breakneck pace, there’s no doubt the crypto market is paying close attention to XLM.

While the fundamentals and technical indicators point to bullish momentum, the risks of overheating remain very real.

For short-term traders, watching resistance at $0.439 and support at $0.355 will be critical. For long-term holders, however, the growing open interest may signal that Stellar’s long-overdue breakout is finally underway.

As always in crypto: stay alert, stay diversified, and don’t ignore the signs.

The surge in Stellar open interest highlights growing market conviction in XLM’s future. As Stellar open interestclimbs, traders should monitor key resistance zones closely.

While the spike in Stellar open interest suggests bullish momentum, overextension risks remain. Ultimately, Stellar open interest could dictate whether XLM sustains gains or faces correction.