Stellar's token XLM surged 40.43% in the past 24 hours, reaching $0.2862 and increasing its market capitalization to $9.62 billion. Trading volume rose to $2.27 billion during the same period, indicating that this surge was not driven by low liquidity, but rather by increased activity in both spot and derivatives trading.
Trading volume and open interest both increased.
As prices rose rapidly, open interest in the derivatives market also increased. Data shows that XLM open interest increased by 10.89% to $361.31 million. This means that new positions entered the market during the price surge, rather than just existing positions being liquidated due to price fluctuations.
The simultaneous expansion of trading volume, open interest, and market capitalization typically indicates increased market participation. Unlike some short-lived rallies, this round of XLM's rise has been accompanied by broader capital participation and a significant increase in market attention.
Breaking out of the long-term downward channel
From a price structure perspective, XLM has broken through the long-term downward channel that had been suppressing its price since the end of 2025. This round of gains started around $0.1424 and subsequently recovered the key levels of $0.2018 and $0.2566.
The article mentions that the current price is approaching the resistance level of $0.2979, with a higher resistance level around $0.3329. If it can hold above $0.2566, the market will continue to watch whether the price will test higher levels further.
The proportion of short positions is still higher than that of long positions.
Despite the significant upward movement of XLM, the position distribution of top Binance traders' accounts remains skewed towards short positions. CoinGlass data shows that 55.6% of accounts still hold short positions, while long positions account for 44.4%, corresponding to a long-short ratio of 0.80.
This means that some traders remain skeptical about this breakout. If prices continue to hold strong, short sellers may be forced to cover their positions, further pushing up buying pressure. For this reason, the current position structure is seen by the market as a crucial point to watch for future price movements.
Overall, this rally in XLM has reversed the weakness that had persisted for months. Future price action will depend on whether the price can hold above the recovered range and whether there will be a concentrated liquidation of short positions at higher levels.
