XLM Defends Key Support Zones as Buying Pressure Builds

XLM has maintained its bullish momentum as it trades above important support zones, preserving its broader recovery. The cryptocurrency's long-to-short ratio rose to 1.15, approaching one-month highs.

Derivatives data also shows an increasingly bullish tilt towards XLM, with positive funding rates and rising long-to-short ratios indicating that more traders are positioning for an upward price move. This is reflected in the fact that XLM's funding rate became positive on September 2 and subsequently climbed to 0.0147%.

Technical indicators also support further gains for XLM. The cryptocurrency has traded above its major exponential moving averages, with the 50-day, 100-day, and 200-day EMAs concentrated between approximately $0.179 and $0.188 forming a potential demand zone that could attract buyers during short-term pullbacks.

XLM faces resistance at the 61.8% Fibonacci retracement level near $0.200, followed by targets at $0.218 and $0.237. Clearing these barriers could open a path towards the descending trendline and the 23.6% Fibonacci retracement around $0.260.