Stellar (XLM) extended gains for the third consecutive day, climbing above $0.2000 at the time of writing on Friday. Cross-border remittance tokens have gained traction despite sluggish sentiment in the broader cryptocurrency market, which has seen major digital assets such as Bitcoin (BTC) and Ethereum (ETH) retreat from May highs.
Stellar holds firm amid strong on-chain activity
Stellar network activity is up with 60,000 active daily users on Friday, up slightly from around 64,000. According to Artemis on-chain data, the number of users actively transacting on the protocol by sending or receiving assets has increased sharply from nearly 38,000 on Sunday, indicating that risk sentiment is continuing to rise. If the daily active users metric maintains its uptrend, demand for XLM may remain bullish.
Meanwhile, demand for Stellar derivatives is surging this week, as reflected by the explosion of perpetual futures open interest (OI) to $292 million on Friday, up from $155 million the day before. This surge shows that retail traders are confident in the short to medium-term outlook for XLM and are willing to open new positions.
The continuous uptick of derivatives plays an important role in supporting the bullish trend. However, if Stellar faces a large oversupply and fails to break out, a correction could bankrupt many traders, which would significantly impact sentiment.
Price Analysis: Stellar maintains bullish outlook
Stellar trades above $0.2000, extending a strong bullish breakout and staying above a rising cluster of exponential moving averages (EMA), the 200-day EMA now provides immediate dynamic support near $0.1973 and the 50-day and 100-day EMAs are at lower levels.
Momentum indicators indicate strong but extended momentum, with spot price pressure along the upper Bollinger Band on the daily chart, the Relative Strength Index (RSI) holding deep in the overbought zone around 77, while the Moving Average Convergence Divergence (MACD) histogram maintains a positive outlook.
On the downside, initial support is the 200-day EMA at $0.1973, followed by the 100-day EMA near $0.1697 and the 50-day EMA at around $0.1618. A deeper pullback would highlight the Bollinger middle band, currently near $0.1584, before the lower band finds support at $0.1241. With no immediate resistance levels based on applicable indicators, bulls maintain control while the price remains above the 200-day EMA. Nevertheless, the overbought RSI suggests that a corrective move towards key support levels would not be surprising.
(The technical analysis for this story was written with the help of AI tools.)
