Stellar (XLM) is facing a strong rise to the sky opportunity thanks to optimistic signals from the derivative market.

Stellar (XLM) is currently fluctuating around the threshold of $0.242 at the time of writing this Thursday, after recording a bounce back of nearly 6% this week. Signals from the derive market indicate that optimistic sentiment is returning, with the funding rate of XLM turning positive and the number of go long positions (Long) reaching a high not seen in over a month. Technically, if XLM can close above the key resistance level of $0.253, a strong double-digit bullish rally could very well be triggered.

Stellar is ready to bounce back as derivative data shows bullish momentum

The long/short ratio on the Coinglass platform for Stellar (XLM) reached 1.11 on Thursday – the highest level in over a month. The fact that this ratio exceeds 1 is a clear sign that market sentiment is leaning positively, as the majority of traders are betting on the bullish potential of XLM.

XLM long/short ratio chart | Source: CoinglassAnother notable bullish signal is the shift in funding rate data. Specifically, the OI-Weighted Funding Rate( of XLM on Coinglass has officially moved into positive territory on Wednesday, recording a level of 0.0007%. This indicates that long positions) are currently paying fees to short positions( – a characteristic that often reflects widespread bullish expectations. Conversely, a negative funding rate indicates that bearish pressure is prevailing.

![])https://img-cdn.gateio.im/webp-social/moments-7cf3d8e5be26d60df1da53222a21431b.webp(The OI-Weighted Funding Rate of XLM | Source: CoinglassHistory shows that whenever the funding rate of XLM reverses from negative to positive and remains in the positive zone, the price of this token tends to bounce back strongly – as illustrated in the chart below.

Price Forecast for Stellar: XLM is on the verge of breaking out

The price of Stellar )XLM( closed below the important support level of $0.253 last week, marking a sharp decrease of 11.52%. Subsequently, this coin returned to test the weekly support area on Sunday. However, from the beginning of the week until Tuesday, XLM recorded an impressive bounce back of 8.6%, before experiencing a slight correction the following day. As of the time of writing this article on Thursday, the price is fluctuating around the level of $0.241.

If the bullish momentum continues and the price surpasses the resistance level of $0.253, a breakout could push XLM up an additional 12% from the current level, heading towards the recent local peak at $0.285.

![])https://img-cdn.gateio.im/webp-social/moments-67046cfd7b7e88b110b46eba42ce89b9.webp(XLM/USDT daily chart | Source: TradingViewTechnical indicators are also starting to show positive signals. The relative strength index )RSI( is currently at 40, indicating that selling pressure has eased after falling into the oversold territory. To confirm a clearer bounce back trend, the RSI needs to break above the neutral threshold of 50. Meanwhile, the MACD indicator is nearing a bullish crossover point – if this signal completes, it could further strengthen confidence in a new bullish phase.

On the contrary, if selling pressure increases, XLM risks returning to test the weekly support area around the $0.225 mark.

SN_Nour