Stellar XLM has entered a critical phase after weeks of bearish pressure pushed the token toward multi-month lows.
Recent price stabilisation above the $0.23 zone, combined with rising open interest, has introduced early signs of potential recovery, but technical indicators remain firmly cautious. With volatility tightening and traders slowly reentering the market, the coin is now at a crossroads where buyers must defend key levels to avoid a deeper retracement.
Open Interest Rise Supports Mild Price Recovery After Multi-Day Selloff
The XLM/USD hourly chart shows a distinct downtrend beginning around November 15, with sellers dominating the market for several sessions. Price gradually declined toward the $0.22 region, where buyers finally stepped in to slow the selloff. After hitting this low, the token began a mild upward shift and is now consolidating just above $0.2365, signalling an attempt by bulls to regain control.
Source: Open Interest
A notable change in market structure comes from aggregated open interest, which remained steady during the decline but began climbing after November 21. OI has risen toward 64 million contracts, indicating an influx of new market participation. Rising OI alongside rising prices typically suggests the entry of new long positions, increasing the probability of a sustained rebound.
Despite this improvement, traders should remain cautious. Rising OI can support upward movement, but it also raises the risk of volatility if sentiment shifts. For a meaningful trend reversal to take shape, the price must maintain stability above $0.24 while OI continues to expand in a controlled manner.
BraveNewCoin Data Shows Flat 24-Hour Performance but Strong Market Standing
According to BraveNewCoin, Stellar is currently priced at $0.23, reflecting a marginal 0.01% decline over the past 24 hours. This flat performance highlights the market’s indecision following recent volatility. Nonetheless, the coin maintains a strong position with a market capitalisation of $7.43 billion, ranking it 24th globally, supported by an available supply exceeding 32.26 billion tokens.
Daily trading volume stands at $134.4 million, demonstrating healthy liquidity despite the recent downtrend. The tight price window between $0.226 and $0.238 over the past day reinforces the idea of a consolidation phase, where neither buyers nor sellers are willing to make aggressive moves. This sideways shift often precedes larger market expansion once a catalyst or technical breakout appears.
While fundamentals remain stable, market direction will depend heavily on whether upcoming sessions bring increased participation and stronger volatility. The token’s ability to stay above the $0.23 support zone will be key in defining whether the recent recovery attempt gains traction.
Technical Indicators from TradingView Highlight a Cautious-to-Bearish Outlook
TradingView’s daily chart reinforces the broader narrative of weakness with limited rebound strength. XLM/USD has remained below the Bollinger Band basis at $0.2640, which underscores persistent bearish sentiment since late September. Price action is currently hovering near the lower Bollinger Band at $0.2238, a region that has acted as short-term support but continues to expose the token to downside risk.
Source: TradingView
The MACD indicator remains firmly bearish. The MACD line is positioned below the signal line, while the histogram continues printing negative values. No meaningful contraction is visible, suggesting that selling pressure, though softened, still overshadows buyer momentum. Until the MACD registers a bullish crossover, upside movements may remain corrective rather than trend-shifting.
Key support rests at $0.1678, a level that could come into play if the market loses its grip on the current consolidation zone. Major resistance stands at $0.2640, and reclaiming this level is critical for establishing a bullish reversal on higher timeframes. Without a decisive move above the basis band, traders are likely to adopt a conservative stance in the short term.
