- Stellar (XLM) rebounds above $0.31 after dropping below $0.19.
- Open interest plunges 50%, suggesting a full market reset.
- RSI and Bollinger data indicate oversold conditions — hinting at a possible rebound.
Stellar (XLM) is finally showing early signs of recovery after a wild ride that briefly pushed prices below $0.19 before snapping back above $0.31. The sharp swings over the past few sessions appear to have flushed out excessive leverage — a reset that could help the market settle into a calmer rhythm.
The past few weeks have been anything but smooth for XLM traders. A burst of liquidations sent prices tumbling before buyers quickly stepped in to absorb supply, leaving behind what looks like a cleaner setup for accumulation. Now, the question is whether Stellar can hold its footing above $0.30 and build a sustainable base.
Open Interest Drop Signals Market Reset
At the time of writing, XLM/USD is hovering near $0.312, consolidating after that rollercoaster dip-and-rebound move. When the price briefly slipped under $0.19, it triggered a wave of forced liquidations that cleared out speculative long positions. But the recovery was fast — and that bounce off the lows suggests some serious buyers were waiting below.
Open interest — which tracks the total number of active futures contracts — has taken a major hit, dropping from over $160 million to roughly $81 million. That’s a pretty big deleveraging event, the kind that often resets market conditions after overheated phases.
Less leverage means less noise — and more room for organic price action. If this cleaner structure holds, Stellar could shift into a steadier accumulation phase as confidence starts to rebuild. The key now is keeping support above $0.31; losing that level could open another round of turbulence, while holding it could lay the groundwork for a slow but healthy recovery.
Market Activity Rebounds With a 6.7% Daily Gain
Despite the earlier chaos, Stellar is actually up 6.69% over the past 24 hours, trading around $0.31 with a market cap of roughly $10 billion. Trading volume crossed $273 million, placing XLM back among the top 20 cryptos by activity. Liquidity across exchanges remains solid thanks to its 32 billion circulating tokens, and that stability is helping calm short-term sentiment.
The quick rebound in both price and volume shows traders are slowly regaining confidence after last week’s liquidation wave. Open interest remains low, which aligns with reduced speculative pressure — a good sign that the market is stabilizing naturally instead of being driven by leverage-heavy swings.
Technicals Show Oversold Signals
Zooming in on the daily chart, XLM looks technically oversold. The coin is trading near the lower Bollinger Band, an area that often precedes short-term recoveries once selling momentum starts to cool off.
The Relative Strength Index (RSI) currently sits around 36, well below the neutral 50 mark. That suggests bearish momentum has stretched too far and could be nearing exhaustion. If buyers keep defending the current levels, Stellar may try to reclaim the Bollinger Band basis — around $11.5 billion in market cap terms — which often signals the start of renewed upside pressure.
If support near $9.3 billion (roughly $0.29 per coin) holds steady, XLM could gradually transition from stabilization into recovery, potentially targeting resistance levels closer to $0.35–$0.38 in the coming weeks.
For now, it looks like the market has flushed out the excess — the speculative froth is gone, replaced by slower, more deliberate moves. It’s not flashy, but it’s healthy — the kind of reset that often builds the foundation for the next leg up.
