XLM futures open interest stagnates at 639,000 contracts, signaling market hesitation

Open Interest Stagnation: A Market at a Crossroads

XLM futures market activity reveals a critical turning point as open interest stabilizes at approximately 639,000 contracts. This stagnation represents a significant departure from earlier volatility patterns, reflecting growing uncertainty among derivative traders regarding Stellar's near-term price direction.

The flat open interest trajectory suggests traders are neither aggressively entering new long positions nor significantly increasing short bets. This cautious positioning contrasts sharply with historical patterns when XLM achieved all-time high open interest of $520 million during its 78% weekly surge. Current levels indicate reduced leverage deployment across major exchanges.

Price stability around $0.24-$0.25 coincides with this open interest plateau, demonstrating how trader commitment directly influences volatility. Recent data shows open interest recovered from weekly lows, yet failed to establish sustained momentum, confirming that market participants remain unconvinced about Stellar's directional conviction. Until external catalysts or technical breakouts emerge, the current stagnation likely persists as traders await clearer price signals before committing substantial capital to derivatives markets.

Funding rates turn negative as XLM price tests $0.26 support level

XLM has entered a critical phase as funding rates turned negative, signaling trader uncertainty and potential market capitulation. On December 8, 2025, Stellar (XLM) traded at $0.2408, down 0.79% in the past hour, as the asset tests its $0.26 support level amid mounting selling pressure.

The negative funding rate represents a significant shift in market sentiment. When funding rates turn negative, short sellers pay long holders to maintain positions, indicating that traders increasingly expect further downside movement. This reversal from positive to negative rates reflects growing bearish conviction among derivatives traders on major platforms.

The price action reveals concerning technical weakness. XLM dropped from $0.2580 to $0.2548 over a 24-hour period while breaking its ascending trendline support, accompanied by a 78% surge in trading volume reaching 30.4 million units. This volume spike during a breakdown typically validates the bearish signal rather than suggesting capitulation buying.

The $0.26 support level now represents a critical inflection point. According to technical analysis, $0.22 serves as the major support zone below current levels, while $0.35 remains near-term resistance. XLM's market cap has contracted to approximately $7.79 billion, with sustained trading below the zero line on Bollinger Bands indicating continued net capital outflows from the asset, reinforcing the bearish pressure facing buyers.

Options market shows 60% probability of XLM dropping below $0.22 by year-end

According to recent derivatives market analysis, options traders are pricing in significant downside risk for Stellar (XLM) as we approach year-end 2025. The options market reflects a 60% probability that XLM will decline below the critical support level of $0.22 by December 31st.

This bearish sentiment contrasts sharply with bullish analyst forecasts that target a $0.30-$0.31 range within the next four weeks, representing potential upside of 20-24% from current levels. The divergence between options market expectations and technical analyst projections highlights the uncertainty surrounding XLM's near-term trajectory.

The $0.22 threshold represents the lower boundary of recent consolidation patterns and has emerged as the key technical battleground. If XLM sustains below this level, further deterioration toward $0.20 becomes increasingly probable. However, maintaining support above $0.2422 remains essential for bulls attempting to reclaim the $0.2540 resistance zone and validate the anticipated recovery toward higher price objectives.

Liquidations surge 78% above average as XLM breaks key $0.2777 resistance

XLM experienced a significant surge in liquidations, reaching 45.09 million tokens—a remarkable 78% increase above the standard 25.4 million token 24-hour moving average. This exceptional volume spike during the trading session confirmed critical technical resistance near $0.2777, establishing a pivotal breakout moment for the asset.

The coordinated institutional buying that reversed earlier bearish momentum provided strong evidence of accumulation pressure at key support levels. Institutional flows drove price action with particular intensity during the 13:20-13:22 window, suggesting deliberate positioning rather than retail-driven speculation.

This liquidation surge, combined with successful resistance penetration, established new technical parameters for near-term trading dynamics. The breakout confirmation during subsequent trading windows indicates continuation potential, with progression through intermediate resistance levels at $0.2690, $0.2700, and $0.2705 demonstrating sustained bullish momentum and institutional conviction in higher price targets.

FAQ

Is XLM coin a good investment?

Yes, XLM coin shows strong potential. Its innovative blockchain technology and growing adoption in cross-border payments make it a promising long-term investment in the crypto market.

Could XLM reach $1 dollar?

Yes, XLM has the potential to reach $1 by 2030. Current market trends and increasing adoption suggest this is possible, though it depends on continued growth and favorable market conditions.

What is the price prediction for XLM?

XLM is predicted to reach $2.5 by 2030. Short-term forecasts suggest it may remain under $0.026, but long-term outlook is bullish due to increasing adoption of its cross-border payment solutions.

What is XLM coin?

XLM is the native cryptocurrency of the Stellar network, designed for fast, low-cost cross-border transactions and currency exchanges. It facilitates seamless global money transfers.