OI Stellar (XLM) rise to the sky 127% – Will the price reach a new peak this year?

Stellar (XLM) has recently undergone a significant bullish trend, reaching a 5-month high. As a result, it has become one of the best-performing coins in the market.

Although the bullish momentum is driven by the increasing confidence of traders, there are still concerns that this altcoin is becoming "overheated," which may affect price movements in the coming days.

XLM Trader is very bullish

The open contract (OI) of XLM has surged 127% to a level of 346 million dollars, compared to 160 million dollars just last week. Such an explosion in OI indicates that investors are increasingly participating, possibly due to FOMO (fear of missing out on the opportunity).

At the same time, the funding rate ( funding fee ) is also in the positive zone, meaning that traders still maintain a bullish attitude towards the potential of XLM.

The bullish increase indicates that confidence is being built in the market, which can help prevent the risk of a sharp price drop. However, this rapid growth can also lead to excessive stretching in the short term, so market participants need to maintain a cautious attitude.

OI XLM | Source: CoinglassThe Chaikin Money Flow (CMF) of XLM also shows strong inflows, meaning money is continuously pouring into the market. This bullish trend reflects the positive sentiment of investors and the growing confidence in the long-term potential of Stellar.

However, historically, when the CMF exceeds the threshold of 20, this is a warning signal of an overbought state, which may lead to a price correction.

As XLM continues to grow strongly, the risk of "overheating" increases and it may soon enter a correction phase. Investors need to closely monitor these technical indicators to detect early signs of a price pullback.

XLM CMF | Source: TradingView## Will the price of XLM continue to be bullish?

XLM price has increased by 13% in the last 24 hours, trading around $0.442. This altcoin has risen by 68% in the month, indicating growing interest from investors.

However, since the price has just surpassed the resistance zone of $0.439, it is necessary to continue maintaining the bullish momentum. In the event of a drop below this resistance zone, XLM may consolidate in the range of $0.412 – $0.439. If selling pressure increases, the price will slide back to $0.355, forming a new support level.

XLM Price Analysis | Source: TradingViewIf the bullish momentum continues into next week, XLM may gradually approach the $0.5 mark.

Breaking through the $0.5 mark will confirm that the bullish trend is still being maintained, reinforcing the positive outlook in the medium term. However, if market sentiment changes, this altcoin may correct, causing the bullish scenario to be negated.

Minh Anh