Stellar (XLM) Price Prediction: $130M OI Drop After 70% Weekly Rally
XLM has been super volatile and up 70% in the last week and is now top 10.
OI hit a record $339 million on Nov 24, but then dropped $130 million to $209 million, so leveraged positions are being closed. This is a sign of decreasing derivative market activity, which means traders are closing positions due to lack of confidence or taking profits.
And XLM is down 10% in the last 24 hours so the rally is losing steam. Fewer leveraged positions and decreasing price action, traders are cautious on XLM short term.
Social Metrics Show Decreasing Interest
Another sign of XLM losing steam is its social dominance. Once a hot topic in crypto discussions, XLM social dominance has dropped from 3.13% to 1.73%. This means people are talking less about XLM and moving on to other assets.
Social dominance measures a cryptocurrency’s presence in online conversations. A increase means more demand, a decrease means less attention. For XLM, the sentiment shift adds to the bearish pressure. Without more interest, holding on to the current price will be tough.
Price Stabilization and Future Outlook
Despite the fading rally, Stellar is trading at $0.4945, up 1.65% in the last 24 hours. Having retraced 50% of its recent surge, it now sits near the $0.4333 Fibonacci level, a key support zone.
Immediate resistance lies at $0.5408, aligned with the 23.6% retracement. A breakout above this level could push prices toward $0.5871 or even $0.6361.
On the downside, critical support remains at $0.4814, with further cushions at the 50-EMA of $0.4385 and $0.4333. The RSI at 55.31 suggests moderate bullish momentum, leaving room for potential upside if buyers can reclaim key levels.
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