XLM's recent market performance has attracted widespread attention: despite the price increase being backed by a significant rebound in trader confidence, there are also concerns that this altcoin may have entered an overheated state, which could put pressure on its price trend in the coming days. Trader bullish sentiment has significantly heated up. The open interest of contracts has recently experienced explosive growth—soaring 127% from $160 million last weekend to $346 million.
The surge in this data not only reflects a significant increase in investor participation but may also be the result of the market missing out on fear-driven sentiment. Meanwhile, the funding rates continue to remain positive, echoing the growth of market interest, indicating that traders still hold an optimistic view of XLM's short-term potential. The rapid expansion of open interest usually means that market confidence is strengthening, which can buffer the risk of sharp price declines to some extent; however, on the other hand, such rapid growth may also lead to excessive market expansion in the short term, so participants need to remain vigilant and avoid blindly chasing highs.
Strong capital inflow, but signs of overbought risk emerging. The Chaikin Money Flow indicator also shows that XLM is experiencing strong capital inflow, reflecting a trend of continuous capital pouring into the market. This bullish trend represents investors' positive sentiment and reflects the increasing confidence in the long-term potential of the Stellar ecosystem. However, historical data gives a warning: when the CMF indicator exceeds the 0.2 threshold, it often indicates that the asset has entered an overbought state, and the likelihood of price correction increases.
The current strong performance of XLM continues the bullish trend, but the risk of overheating is also accumulating, and the market may soon enter a cooling period. Price trend: breakthrough resistance or facing correction? In the past 24 hours, the price of XLM has soared by 21%, currently trading at $0.44, close to the key resistance level of $0.46; from a monthly performance perspective, its increase has reached 85%, and the explosive growth of investor interest is evident.
As the price approaches the resistance area, the market generally expects a consolidation to occur in the short term, with a range between $0.40 and $0.43. If selling pressure significantly increases during this period, the price may retreat to $0.355, forming a new support level. If the bullish momentum can continue into next week,$XLM it is expected to break through the $0.46 resistance and make a push towards the $0.50 mark. Once it stabilizes at $0.50, it will further validate the sustainability of the bullish outlook and confirm the continuation of the upward trend; conversely, if market sentiment shifts, this altcoin may face a phase of correction.
