Stellar’s XLM fell 3.91% to $0.18 on Thursday, landing on the lower band of its Bollinger Bands with momentum essentially flat. The price action might look bearish at first glance, but behind the surface, something else is brewing.
Price at the floor, momentum gone
The token is sitting right on its Bollinger Band floor — a technical level that often acts as a springboard when volume and positioning align. Right now, momentum indicators are dead: no push in either direction. That flatness can be deceptive. In markets, stillness at a key support level often precedes a sharp move.
Open interest jumps while whales go long
Open interest in XLM futures rose 9.68% over the same period. That’s a notable increase, especially when paired with data showing whale net-long positioning. Large holders are betting on the upside even as the spot price drifts lower. The combination — price at support, stalled momentum, rising open interest, and whale longs — is what some traders call a coiled spring setup. The idea is that energy is building under the surface, waiting for a catalyst to release it.
What traders are watching now
The setup doesn’t guarantee a breakout. A coiled spring can also unwind in the opposite direction if the support fails. Traders will be watching for any volume spike or news catalyst that could tip the balance. For now, the data points to a potential squeeze, but the market hasn’t decided which way to spring.
