XLM Price Up 5% Despite Market Downfall, What to Expect?

Stellar’s XLM emerged as one of the best performing coins in the top 50 within the last 24 hours. But could this be a sign that XLM price has found favor with the bulls and is slated to achieve even more upside?

The crypto market is finally cooling off from the latest bearish episode and XLM had the biggest recovery out of the top coins.

It managed to rally by over 14% from the day’s low to its high, extending the bullish momentum that has been brewing since Tuesday.

XLM’s bullish momentum pushed as high as $0.295 in the last 24 hours. A noteworthy premium compared to its $0.267 press time price tag courtesy of a strong pullback after price was deeply overbought in the 1-hour chart.

XLM price tag | Source: TradingView

The pullback in the 1-hour chart suggests that there was still a heavy focus on short term profit taking. However, if XLM manages to maintain healthy demand during the weekend, then this could signal more bullish recovery down the road.

XLM price demand makes comeback in both spot and derivatives market

On-chain data revealed a surge in spot and derivatives activity after the latest support retest, confirming demand build-up. For context, derivatives volumes clocked $420.36 million on Thursday courtesy of a 140.31% volume uptick during the same session.

XLM open interest surged to $1233.75 million after an 18.46% gain. Spot inflows were up$2.32 million in the last 24 hours.

While this may have aided in the cryptocurrency’s recent recovery, the spot flows remained relatively weak. Especially considering that the previously larger spike on 2 March barely had an impact.

XLM spot flows | Source: Coinglass

Is this the start of XLM’s bullish swing?

XLM price’s bullish performance so far this week demonstrated that this particular coin is still able to attract a lot of attention. Despite being overshadowed by its top peers.

In every bounce back there is that random and unassuming coin that experiences a sizable liquidity injection and XLM could be it this time.

There was another major observation that could offer more clarity regarding whether XLM will continue attracting liquidity.

The coin has so far managed to hold on to a premium above its lower range in November last year. In other words, it did not lose all the gains achieved on the way up.

A sizable number of its top peers have erased all of the gains achieved in Q4 2024. Confirmation of confidence among XLM holders who opted to HODL despite the recent market headwinds.

XLM’s bullish attempts have highlighted its attractiveness to investors. However, this does not guarantee immunity from liquidity rotation, or other eventualities that will suppress price action.

The market headwinds are not over yet and sustained disruption for longer may feed into uncertainty. XLM’s ability to sustain more upside, ultimately depends on how the political-economic scene will unfold and whether sentiment improves.

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