Key Takeaways
Stellar flips bullish on SuperTrend with whales and traders boosting derivatives demand. Meanwhile, the rising Open Interest and long-heavy positions support a potential breakout above $0.38.
Stellar [XLM] has flipped bullish on the SuperTrend indicator for the first time since the 25th of August, marking a potential turning point for the altcoin.
At press time, XLM traded at $0.375, reflecting a 1.2% daily loss. This shift comes after weeks of sideways pressure and signals that momentum is tilting toward buyers.
However, whether this momentum translates into a sustained uptrend depends on broader derivatives’ activity.
Therefore, traders are closely monitoring confirmation signals before validating a possible breakout toward higher resistance levels.
Are whales signaling confidence through oversized futures orders?
The Futures Average Order Size indicates big whale orders dominating recent activity, showing the influence of large players on XLM’s direction.
The uptick in order size reflects a willingness from whales to accumulate positions, potentially fueling upward momentum.
However, when whale activity dominates, retail traders often follow cautiously, waiting for clearer signals. Therefore, whale-driven moves tend to shape sentiment across both spot and futures markets.
This development suggests that XLM’s price path could be heavily guided by whale positioning in the near term.
Can Open Interest growth sustain this new bullish momentum?
Open Interest(OI) has climbed 9.21% to $343.77 million, at press time, highlighting renewed speculative appetite in XLM’s derivatives market.
This expansion shows traders are opening fresh contracts rather than closing existing ones, supporting expectations of a price breakout.
However, rising OI also indicates growing leverage, which can intensify volatility if liquidations occur.
The increase aligns with XLM’s bullish SuperTrend signal, strengthening the case for continuation.
Thus, if sustained, this OI growth could amplify XLM’s rally potential, reinforcing the bullish bias now forming.
Are traders positioning aggressively with more long accounts?
At the time of writing, Binance Long/Short Ratio showed 59.04% long accounts compared to 40.96% short accounts, signaling a strong tilt toward bullish positioning.
This imbalance highlights optimism across retail and institutional participants, suggesting confidence in further upside.
However, an aggressive buildup of long positions also raises liquidation risks if XLM fails to hold near-term support.
Therefore, while the ratio strengthens the bullish case, it simultaneously introduces the possibility of sharp corrections.
The market appears to be leaning heavily toward longs, leaving little margin for unexpected downside surprises.
Is Stellar ready for a sustained breakout?
Stellar’s bullish SuperTrend flip, whale-driven futures orders, rising OI, and long-heavy positioning all point toward a rally in progress.
Therefore, the evidence supports a decisive case that XLM is primed for a breakout, provided it maintains momentum above critical support levels.
