Is XLM price heading for a breakout as Stellar rally tops 22% this week?

Stellar’s XLM is the best performer among the top 20 cryptocurrencies by market cap. It is up by 4.5% in the last 24 hours and is now trading above $0.23 per coin.

XLM’s gains have been supported by improving futures positioning and fresh ecosystem developments that have strengthened sentiment around Stellar.

The momentum indicators further suggest that XLM could extend its rally in the near term.

Stellar extends rally with strong futures positioning

Stellar continues to outperform, rising more than 22% this week. Derivatives data shows a clear bullish tilt, with funding rates turning positive at 0.0065%. 

This indicates long positions are now paying shorts — a structure often associated with sustained upward momentum.

The long-to-short ratio has also flipped positive, reinforcing growing trader confidence and supporting continued price strength.

The futures Open Interest (OI) is also up by nearly 10% in the last 24 hours and now reads US$271.5 million (approx. $475.1 million).

The rising OI indicates that more traders are opening long positions as they anticipate XLM’s price to rally higher in the near term. 

Stellar’s rally is also being supported by expanding ecosystem activity and real-world asset integration.

The network recently enabled access to tokenized US Treasuries and AAA-rated collateralized loan obligations (CLOs) via Sushi, broadening institutional exposure to blockchain-based yield products.

Thanks to this integration, Stellar users can access tokenized US Treasuries and AAA CLO exposure through Sushi, one of DeFi’s most established liquidity venues.

In addition, Zebec Network launched an enterprise payroll solution on Stellar, allowing employees and contractors to receive payments instantly in digital wallets and convert funds into fiat via Mastercard-linked cards.

At a high level, Zebec will allow businesses to pay employees and contractors on Stellar in real time, with earnings streamed by the second.

Instead of waiting days or weeks for payroll to clear, earnings can be streamed continuously, accessed instantly, and used immediately.

These developments are strengthening Stellar’s utility narrative and reinforcing bullish sentiment.

XLM technical outlook. Bulls continue to stay in control

While the other leading cryptocurrencies are in the red, XLM is currently up by more than 4%.

The XLM/USD 4-hour chart is bullish as Stellar is hovering around $0.24, holding above key moving averages clustered between $0.18 and $0.20 — a structure that supports its bullish bias.

The token has surged past the the 38.2% Fibonacci retracement level at $0.237, which acts as an immediate pivot zone.

Momentum indicators remain supportive, with RSI near 69 and a positive MACD histogram suggesting continued upside pressure, though conditions are approaching short-term overextension.

If the market retraces, support levels are layered at $0.218 and $0.200, reinforced by key EMAs. 

However, if the buyers maintain control, they could target the resistance level at $0.260 in the near term. 

A daily candle close above this resistance could allow XLM to target the prior swing high near $0.298.