Stellar (XLM) surges 92% in a week, trading volume hits $14 billion

Stellar (XLM) has experienced a significant surge in activity this week, with the cryptocurrency jumping 12% in the last 24 hours to trade around $0.48. This surge is part of a broader trend, as XLM's seven-day return stands at an impressive 92%. This rally has sparked a bullish frenzy among investors, with spot market trading volume climbing to $14 billion, indicating a strong influx of capital into the asset.

The old resistance zone at $0.31 to $0.37 has now flipped into a solid support area, providing buyers with a clear line in the sand. This shift suggests that the cryptocurrency has strong underlying support, which could pave the way for further gains. Wave 3 in the Elliott count appears to be stretching higher, indicating that there is room for more upside if the momentum holds.

While spot volume is surging, derivatives activity paints a slightly different picture. According to CoinGlass figures, derivatives trading volume slipped 2.25% to $3.80 billion, even as Open Interest jumped 29% to $496 million. The rise in Open Interest suggests that more new positions are being opened, but funding rates indicate that traders are not over-leveraging to chase quick gains. This cautious approach by traders could be a sign of a more sustainable rally.

The Relative Strength Index (RSI) is currently sitting near 89, well above the usual overbought threshold of 70. This level often triggers short-term pullbacks, but in a strong uptrend, RSI can remain at lofty readings for longer than many expect. The MACD line at 0.02 lies comfortably above its signal line at 0.01, and the growing histogram bars hint that bullish momentum is not fading anytime soon.

Analysts point out that Stellar has logged nine straight years of higher lows, a pattern that has held through both bear markets and bull runs. If this trend continues, it could pave the way for a fifth wave—or a Wave C—move similar to past rallies in major altcoins. This long-term uptrend, combined with strong on-chain support and robust momentum indicators, suggests that Stellar is set for more gains.

However, traders are keeping a close eye on volume and on-chain signals. Sharp inflections in RSI or a sudden shift in funding rates could spark profit-taking. A pullback toward the $0.35–$0.38 zone would still leave XLM in a bullish setup and might give fresh buyers a better entry point. With a 92% surge in a week, a pause or small correction wouldn't be a surprise. Traders and investors will be watching closely as sessions unfold to see if XLM can push past $0.50 or if it takes that breather first.