The recent uptick in Stellar's XLM price has sparked interest among traders, but market analysts are urging caution. Concerns over derivatives positioning and technical indicators suggest that the bullish momentum may be short-lived, as the source notes that volatility could increase in the near future.
Declining Open Interest in XLM Derivatives
Despite the bounce, analysts point to declining open interest in XLM derivatives, which typically signals a lack of confidence among traders. Additionally, the rise in short positions indicates that many are betting against the asset, reflecting limited expectations for significant price increases in the near term.
Critical Support Level at 0.15
The critical support level at 0.15 is under scrutiny, as failure to maintain this threshold could trigger further downside risks for XLM. Traders are advised to monitor these indicators closely as they could influence market sentiment and price movements in the coming days.
Traders' mixed feelings about Stellar's short-term prospects were highlighted in a recent analysis, contrasting with the recent uptick in XLM price. For more details, see market sentiment.
