Stellar (XLM) surged 40.43% in the past 24 hours, driven by a sharp rise in both spot and derivatives activity. The rally broke a multi‑month descending channel and pushed the price toward new resistance levels, while top Binance traders remain net short, setting up a possible squeeze.

Stellar's 40.43% 24‑hour surge reshapes its price chart

The cryptocurrency leapt from the long‑term support zone near $0.1424 to breach the channel ceiling, hitting $0.2566 and eyeing $0.2979 as the next major hurdle. According to the source, the breakout marks the first time XLM has reclaimed price levels dominated by sellers for several months , indicating a clear shift in market sentiment.

Volume spikes to $2.27 billion, signaling fresh buying pressure

Trading volume jumped 33.85% to roughly $2.27 bn in the last day, a rise that suggests the price move is backed by genuine demand rather than thin liquidity.. The source notes that while many altcoins stayed in narrow ranges, XLM attracted notable attention, outperforming the broader crypto market.

Open interest climbs 10.89% to $361.31 million, adding new positions

Derivatives data showed open interest rising close to 11% to $361.31 million, meaning traders are opening fresh contracts alongside the rally. The report emphasizes that this increase, paired with higher volume, reflects confidence among participants and could sustain upward momentum.

Short‑bias among top Binance traders fuels squeeze risk

Despite the rally, the long‑short ratio on Binance hovered at 0.8, indicating that short positions still outnumber longs. the source points out that this imbalance creates a potential short‑covering squeeze if price continues to rise, a scenario that could further accelerate XLM’s advance.

Will XLM sustaain above $0.2566?

Key unknowns include whether the price can hold above the $0.2566 resistance and how the overbought Stochastic RSI reading of 195.15 will affect short‑term momentum. The source provides no comment from major exchanges or institutional investors, leaving the durability of the breakout open to debate.