Stellar (XLM) is the best performer among the top 20 cryptocurrencies by market cap, up 7% in the last 24 hours.
The coin is trading around $0.16 after posting a modest rebound on the previous day.
However, mixed on-chain and derivatives data indicate traders remain cautious despite the ongoing recovery efforts.
The technical indicators suggest that XLM could be heading for an upward breakout in the near term.
XLM rallies despite mixed on-chain and derivatives data
Stellar has outperformed the other top 20 cryptocurrencies since Monday, adding 7% to its value on Tuesday.
The rally comes as Stellar’s on-chain data shows a positive bias.
Santiment’s Social Dominance index measures the share of XLM-related discussions across the cryptocurrency media.
The index has been increasing since the start of the month and now reads 0.029%, its highest level since February 4.
This increase indicates growing market interest and strengthening sentiment among XLM investors.
However, Stellar’s CryptoQuant summary data shows a largely neutral outlook.
The outlook could soon switch bullish thanks to the presence of large whale orders in the market.
Meanwhile, the other key metrics across both spot and futures markets continue to signal overall indecision among traders.
The derivatives market is also showing mixed sentiment among traders.
CoinGlass’s XLM OI-Weighted Funding Rate data indicates that the number of traders betting that the price of Stellar will slide further is higher than those anticipating a price increase.
The metric switched negative on Friday and currently reads -0.006%.
This suggests that shorts are paying longs, signalling bearish sentiment toward XLM.
Furthermore, the long-to-short ratio for Stellar reads 0.77 on Tuesday. The ratio staying below one reflects a bearish sentiment in the market.
The combination of slightly bullish on-chain with bearish derivatives metrics shows that investors remain undecided.
The indecision could limit the chances of a sustained recovery.
XLM eyes a breakout above the descending trendline
The XLM/USD 4-hour chart is bearish as XLM is trading at $0.160062 at press time.
The short-term bias remains neutral but is tilting towards the bullish narrative.
XLM is currently trading below the 50-day and 100-day Exponential Moving Averages, clustered around $0.172–$0.200, ensuring that the broader downtrend remains at play.
The Moving Average Convergence Divergence (MACD) indicator on the 4-hour chart remains marginally positive, indicating a growing bullish bias.
The Relative Strength Index (RSI) at 66 shows a bullish momentum, with further upward movement to take it into the overbought condition.
If the bulls push the price above the trendline resistance area at $0.164–$0.165, XLM could rally higher towards the 50-day EMA near $0.172.
An extended rally would see the bulls test the $0.181 resistance level.
However, if the trendline resistance holds, XLM will retest the recent lows around $0.159, followed by the $0.145 area.
A deeper correction would expose XLM to the support level at $0.1360, where buyers previously emerged to halt the decline.
https://invezz.com/news/2026/03/10/xlm-tops-gainers-with-7-rally-bulls-target-0-165-resistance/
