Stellar (XLM) records a bounce back signal as market sentiment gradually improves.

The price of Stellar (XLM) is maintaining a green color around the 0.30 USD level on Thursday afternoon, after bouncing back from the support zone near the lower boundary of the falling wedge model ( on the daily chart. Data from the derivatives market shows that a recovery signal is forming, as the funding rate has turned positive and the number of longs ) from traders has increased significantly. From a technical perspective, the weakening of the downtrend also reinforces expectations for a bounce back in the short term.

Stellar's derivative data shows a trend leaning towards the bulls

According to the OI-Weighted Funding Rate data from CoinGlass, the number of traders betting on the scenario of Stellar (XLM) falling has significantly narrowed compared to those who believe in the upward trend.

The funding rate has shifted to the positive zone, reaching 0.0011% on Thursday, indicating that the bulls are currently paying fees to the bears — a sign that market sentiment is clearly leaning towards the buyers. Historical reality shows that whenever the funding rate shifts from negative to positive, the price of XLM tends to bounce back strongly immediately after.

Stellar's Funding Rate Chart | Source: CoinglassAt the same time, the long/short ratio of XLM on CoinGlass reached 1.14, the highest in over a month, reflecting the increasing confidence of investors.

Mantle's DEX volume | Source: DeFiLlamaThis picture is further supported by data from CryptoQuant, as spot trading and futures contracts show the emergence of large buy orders from whales. The combination of strong demand and positive sentiment is signaling the potential formation of a significant bullish run for XLM in the near future.

Stellar expands its ecosystem development

On Wednesday, Stellar announced a partnership with Space and Time to integrate accurate, comprehensive, and verifiable blockchain data sources. This combination is seen as a significant step forward, paving the way for developers to build more complex financial tools on the Stellar network. This move not only enhances the applicability of the ecosystem but is also expected to attract more interest from organizations and DeFi projects.

Stellar Price Forecast: The decline of XLM shows signs of weakening

The price of Stellar (XLM) was rejected at the important resistance zone of 0.331 USD at the beginning of the week, then fell more than 5% in the following two days, returning to test the lower trend line of the falling wedge pattern. By Thursday afternoon, XLM recorded a slight bounce back, trading around 0.309 USD.

XLM/USDT daily chart | Source: TradingViewIf the buying pressure is maintained, XLM may continue to expand its increase back to the zone of 0.331 USD. Closing the weekly candle above this level will be an important signal, opening up opportunities for a breakout towards the EMA 50 day line at 0.356 USD.

On the daily chart, the RSI indicator at 37 is starting to slope upwards, reflecting a weakening selling pressure. To solidify the bounce back trend, the RSI needs to surpass the neutral level of 50. At the same time, the MACD line and the signal line are narrowing the gap and showing signs of forming a bullish cross (bullish cross) – if confirmed, this will be an early signal for a new rally.

On the contrary, if the bulls cannot maintain momentum, XLM may reverse and retreat to test the support zone of 0.297 USD on the daily timeframe.

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