Stellar's XLM has shown positive movement on Thursday as it successfully defended crucial support levels earlier this week. The cryptocurrency is trading higher, supported by a notable rise in Open Interest and improving funding rates.

Open Interest Growth Signals Renewed Trader Confidence

The Open Interest for XLM has increased significantly, jumping from $153 million on Monday to approximately $195 million, marking a 25% rise within the last 24 hours, according to data from CoinGlass. This concurrent increase in both price and Open Interest indicates that new capital is entering the market, rather than existing traders merely closing their positions. Such trends often reflect a growing conviction in the ongoing recovery.

Market sentiment across perpetual futures has also turned more favorable, with XLM recording positive funding rates after turning positive earlier this week. Positive funding rates imply that long-position traders are willing to pay a premium to maintain their positions, highlighting a bullish outlook among market participants.

Technical Indicators Suggest Caution Despite Recovery

At present, XLM is trading around $0.189 after rebounding from a support level near $0.177. However, the cryptocurrency remains below critical resistance thresholds, including the 50-day EMA at $0.190 and the 200-day EMA at $0.196. Currently, XLM is positioned just above its 100-day EMA at $0.187, which offers immediate support.

Momentum indicators present a mixed picture: the Relative Strength Index (RSI) is hovering around 49, reflecting a neutral trend with no definitive bullish momentum. The MACD is slightly negative, indicating that while bearish pressure has eased, it has not entirely dissipated. Should the upward movement continue, breaking the 50-day EMA at $0.190 would expose higher resistance levels at $0.196 and $0.218. Conversely, if the bearish trend resumes, immediate defense of the $0.187 support level will be critical; failure to maintain this could lead to retests of lower demand zones at $0.177 and $0.142.

This material is informational and should not be considered financial advice.