Bullish Pressure Builds as XLM Open Interest Hits $613M Milestone

Stellar (XLM) is getting a lot of attention again. The amount of money people are investing in contracts to buy or sell XLM in the future has jumped to $613 million. This shows that traders are feeling hopeful about XLM. Known for its fast and cheap international payments, XLM is catching people’s eye as its price starts to go up from recent low points. With strong signs from technical analysis and growing interest around it, experts are talking about the possibility of a big increase in XLM’s value. Is this the beginning of a strong upward trend?

Understandig Open Interest in Futures Trading

Open Interest in futures trading refers to the total number of outstanding futures contracts that have not been settled or closed. It represents the total number of active positions (both long and short) in the market. When a new contract is created (one buyer and one seller), open interest increases by one. When a position is closed (either the buyer or seller exits), open interest decreases.

Open interest helps traders understand the strength of a trend. Rising open interest along with price movement usually signals that the trend is strong and more participants are entering the market. On the other hand, declining open interest might suggest that the current trend is weakening. It’s important to note that open interest is different from trading volume, where volume counts all trades in a day, while open interest reflects ongoing positions. Understanding open interest can help traders make more informed decisions in the futures market.

The XLM Open Interest Surge- What It Means

XLM is heating up, and traders are taking notice. In just 24 hours, open interest in XLM futures jumped 4.04%, reaching $613.49 million, with $162 million flowing into the market a strong signal that confidence is rising. This reflects strong bullish sentiment as XLM recovers from its recent dip, now trading around $0.26.

On the charts, XLM is moving within a falling wedge pattern, which is often seen as a sign that prices might reverse direction. There’s also a bullish divergence forming on the Relative Strength Index (RSI), another classic signal that a reversal could be on the horizon. Recently, the price dipped to new lows but then bounced back into its previous range, reclaiming lost ground. If XLM breaks out of this falling wedge pattern, it could aim for the $0.27 to $0.28 range, offering a potential 11% increase.

The Relative Strength Index (RSI) is sitting at 44, meaning there’s still plenty of room for growth without entering overbought territory. And with daily trading volume up to $280 million, according to CoinMarketCap, the action is definitely heating up.

This surge comes right as PayPal announced that its stablecoin, PYUSD, will soon launch on the Stellar network (pending regulatory approval). This gives XLM a major boost in institutional credibility. On top of that, Stellar’s blockchain recently crossed 265 million transactions, proving that real activity is happening on-chain not just price hype.

Price Predictions for XLM Post-Milestone

XLM’s recent surge in open interest has sparked a wave of bold predictions about where its price might be heading next. Here’s a breakdown of what analysts are expecting:

Short-Term (2025):

XLM might reach $1.29 by the end of 2025, which would be nearly a 400% increase from its current price. This boost could be due to more people using it and a lot of interest from the market. On the other hand, some people are more cautious. They expect the price to be between $0.25 and $0.32 by June 30, 2025, assuming the market doesn’t change much.

 Mid-Term (2026–2027):

 XLM trading between $0.23 and $1.44 during 2025–2026, depending on how well Stellar builds partnerships and rolls out protocol upgrades. Some technical analysts say if XLM breaks out of its current downtrend, it could climb to $1.50.

 Long-Term (2030 and Beyond):

The Currency Analytics projects an ambitious target of $6.19 by 2030, driven by worldwide adoption of Stellar’s fast and affordable cross-border payment tech.

Of course, these predictions come with a few caveats. Factors like regulatory clarity, healthy ecosystem growth, and broader crypto market trends will play a big role. But competition from rivals like XRP and potential regulatory roadblocks could slow XLM’s climb.

Why Bullish Pressure Is Building for XLM

What’s fueling XLM’s bullish momentum? That impressive $613 million open interest didn’t come out of nowhere several big factors are at play:

• Technical Signs: XLM is trading inside a falling wedge, with bullish divergence build up on the RSI, a classic reversal signal.
• Institutional Adoption: Big news like PayPal’s PYUSD stablecoin launching on Stellar and ongoing government-backed pilot programs are boosting trust in XLM across traditional finance circles.
• Strong On-Chain Activity: Stellar recently processed over 265 million transactions, according to TradingView. That kind of activity usually comes before major price action.
• Market Sentiment: Everyone in the altcoin world is excited right now. XRP and Solana are also doing well. With more people getting hopeful about ETFs (Exchange-Traded Funds), it looks like a good time for XLM to go up too.

Risks to Consider

Despite the bullish signals, XLM isn’t free from risks. If it fails to break above the $0.31 resistance level, some analysts warn it could drop back down to the $0.23–$0.24 range. Others point out that XLM has seen a 14% drop over the past month, and with a relatively low RSI, there’s a chance the price may enter a consolidation phase rather than continue its rally. Broader market conditions could also play a role. Bitcoin recently dipped to $101,095, and since XLM has a 0.60 correlation with BTC, any major BTC moves could directly affect XLM’s price.

Another concern is centralization. Some investors are careful because the Stellar Development Foundation has a lot of control over the project. This might make XLM less attractive to traders who prefer decentralized systems.

Is XLM Ready to Soar?

XLM is getting a lot of attention after reaching $613.49 million in open interest. This means more people are investing in contracts to buy or sell XLM in the future. With technical indicators showing potential for growth, strong support from big investors, and lots of activity on the Stellar network, excitement is building. Some experts think XLM could seriously increase in value, with price predictions ranging from $0.38 to a bold $13 in the long run. However, breaking through the $0.31 resistance level and dealing with the market’s ups and downs are still challenges to watch. As Stellar continues to improve international payments and tokenization, more people are getting excited about XLM. Could this be the start of a big rise in price? With positive charts and market sentiment, XLM might just be the next big thing to watch.