- Stellar is one of the best-performing cryptocurrencies this week.
- Open interest in its futures market has jumped to over $95 million.
- The XLM coin could continue rising as buyers target the year-to-date high.
Stellar Lumens price resumed its bullish trend as open interest in the futures market jumped. The XLM token has risen for the second day straight to trade at $0.16. This price is over 110% above the lowest level in June.
Open interest still rising
In this article last week, I noted that Stellar’s open interest in the futures market was rising. This trend has continued, with interest standing at over $95 million. Most of this open interest is in Binance, the biggest player in the crypto industry. It has over $55 million of Stellar’s open interest. The other big players are Bybit, OKX, and Bitget.
Open interest is an important part of the crypto industry because it shows the volume of unfilled orders in the futures market. A higher interest figure is usually seen as a good sign for the cryptocurrency.
Stellar’s open interest shot up earlier this month when Ripple prevailed in its lawsuit against the Securities and Exchange Commission (SEC). The coin was more exposed to the lawsuit indirectly because Stellar was formed by Ripple’s co-founder. It is also used in the payment industry.
Read more: How to buy Stellar.
There is no immediate reason why XLM price and open interest are rising. A likely reason is that investors are simply buying the dip. Also, the coin’s volume has jumped in the past few days. It has risen by over 97% in the past 24 hours to over $366 million.
Another reason could be the last interest rate decision by the Federal Reserve. In it, the bank decided to raise interest rates by 0.25%. With rates at the highest level since 2001, analysts now believe that the Fed will leave them intact for the rest of the year. That is a mildly bullish view for cryptocurrencies.
Stellar price prediction
The XLM crypto price has made a strong recovery in the past few weeks. It has more than doubled from the lowest level in June. As a result, the coin has moved above the 50-day and 25-day moving averages.
Stellar has moved above the $0.133, the highest level in September 22. It has also jumped above the Ichimoku cloud indicator. Meanwhile, the MACD has risen to the highest level this year while the Relative Strength Index (RSI) has formed a bearish divergence pattern.
Therefore, the outlook for the XLM price is unchanged from what I published last week. I suspect that it will continue rising as buyers target the year-to-date high of $0.1952. To do that, bulls will need to flip the resistance at $0.1800 (July 19 high) into a support.
