Stellar (XLM) Price Prediction: XLM derivation data suggests a surge in bullish bets, indicating a potential double-digit pump.

Gate news, on Thursday (June 26), the price of Stellar (XLM) hovered around $0.242, having rebounded nearly 6% so far this week. Derivation data shows that as the financing interest rate for XLM turns positive and bullish bets reach their highest level in over a month, investor confidence is strengthening. Technical outlook indicates that if the daily closing price breaks through the resistance level of $0.253, it could trigger a double-digit rebound.

Derivation signal shows bullish momentum, XLM is expected to break through

On Thursday, the Coinglass long-short ratio for XLM reached 1.11, marking the highest level in over a month. The ratio is above 1, reflecting a bullish sentiment in the market as more traders bet on the rise of XLM prices.

(Source: Coinglass)

Another bullish signal for XLM is that its financing rate data turned positive on Thursday. CoinGlass's open interest weighted financing rate indicates that the number of traders betting on a further decline in the price of XLM is below the number of traders expecting a price rise. Typically, a positive value (longs pay shorts) indicates bullish sentiment, while a negative value (shorts pay longs) indicates bearish sentiment.

The indicator has turned positive, with a reading of 0.0007% on Wednesday, indicating that bulls are paying bears. Usually, as shown in the figure below, when the financing Intrerest Rate turns from negative to positive and remains positive, the XLM price will rise significantly.

(Source: Coinglass)

XLM Price Prediction

FXStreet analyst Manish Chhetri stated that the XLM price closed below the daily support level of $0.253 last week, declining by 11.52%, and then re-tested the weekly support level on Sunday. However, at the beginning of this week, the Stellar coin price rebounded by 8.6% on Tuesday, but experienced a slight pullback the next day. As of Thursday when this article was written, the Stellar coin price is hovering around $0.241.

If XLM recovers, breaks through, and closes above the daily resistance level of $0.253, it may extend its bullish momentum by 12% from the daily level, retesting its high of $0.285.

The Relative Strength Index (RSI) has rebounded from an overbought state to 40 this week, indicating that bearish momentum is weakening. However, to maintain bullish momentum, the RSI must break above the neutral level of 50 to initiate a rebound. The Moving Average Convergence Divergence (MACD) indicator suggests a bullish crossover (the MACD line is close to crossing above the signal line), and if the crossover is completed, it will issue a buy signal.

However, if XLM faces a pullback, it may continue the downward trend and retest its weekly support level of $0.225.

(Source: Trading View)