Stellar (XLM) Price Rises Over 7% on Monday
Stellar (XLM) price increased by more than 7% on Monday. The crypto is bouncing back within a descending channel pattern. Market data shows traders growing more confident. However, XLM faces several resistance levels ahead.
Growing Optimism Among XLM Traders
Derivatives traders are gaining interest in Stellar as the crypto market starts the week strong. This follows hopes for a US government shutdown resolution. Data from CoinGlass shows XLM futures Open Interest at $130.16 million. This is up 11.68% in 24 hours. It suggests traders expect more gains soon.
The long-to-short ratio for XLM is 1.0597. Ratios above 1 mean more long positions than short positions. This points to a bullish mood among traders.
Stellar’s Price Recovers but Faces Key Resistance
Stellar trades near $0.30 on Monday. It is recovering but still below important moving averages. These are the 50-day EMA at $0.3265, 100-day EMA at $0.3417, and 200-day EMA at $0.3361.
If XLM climbs past these averages, it could reach the upper trendline of the descending channel near $0.37. Technical indicators support a bullish shift. The MACD indicator crossed above its signal line. The RSI is at 49, showing reduced selling pressure.
Still, a bearish Death Cross appeared on November 3. This happened when the 50-day EMA crossed below the 200-day EMA, signaling a bearish trend.
If XLM fails to maintain its recovery, it could drop to last week’s low of $0.2520. A close below this level would confirm a bearish breakout of the falling channel.
