Evaluating where XLM stands after a ‘Stellar’ week at work

• Stellar Lumens’ token price increased by 22% in one week.
• Longs persisted in holding their positions, although XLM faced sell pressure.

At a time when the market mostly traded sideways, Stellar Lumens [XLM] gained over 25% in the last seven days. Following the consistent hike in price, the volume of the native digital currency of the Stellar network surged, reaching a weekly high of 216.6 million.

Realistic or not, here’s XLM’s market cap in BTC’s terms

The volume shows the number of tokens that have been involved in transactions within a network. With XLM registering its second-highest since November 2022, it implied that participation escalated. Alongside the rise in value and volume, the weighted sentiment was also not detached.

Leaps and bounds

According to Santiment’s data, the metric jumped to 4.662 on 29 March. While it decreased at some point, the on-chain analytic platform revealed showed that it had recovered. At press time, the weighted sentiment was up at 3.42.

Source: Santiment

The weighted sentiment combines negative and positive remarks, taking into account social text documents to measure investors’ feelings towards an asset. Hence, the increase above the negative region implies that the perception shown to XLM was positive.

Liveliness is not yet out of place

Just last week, the XLM price crossed the $0.1 mark for the first time in almost a year. Coincidentally, the further increase it recorded this week clashed with the nine-year anniversary of the project. But does XLM have what it takes to keep rising?

At press time, the token had already decreased by 33.25%. As per the Moving Average Convergence Divergence (MACD), sellers were now close to taking the control baton from buyers since the blue and orange dynamic lines were closely tied.

A possible explanation of this stance means that the XLM short-term holders were taking gains, triggering selling pressure.

Source: TradingView

Regardless, it seemed that traders were still bullish on the XLM price due to indications from the Exponential Moving Average (EMA). At the time of writing, the 20 EMA (cyan) crossed, and remained above the 50 EMA (yellow), confirming the bias.

Is your portfolio green? Check the Stellar Lumens Profit Calculator

In the derivatives market, long-position traders remained willing to pay shorts as the funding rate remained positive. However, the futures open interest was dealing with a continuous decrease at the time of writing.

According to Coinglass, the open interest was 322.609 million XLM. This indicated means that the number of market participants had declined at the end of the last trading day. And XLM was losing the strength behind its price action.

Source: Coinglass

However, the price fall has not exactly affected traders who opted to long. This was because, as of 31 March, shorts faced higher liquidations out of the $204,000 wiped out in the last 24 hours.