Key takeaways
- Stellar’s XLM has fallen 3.4% and is trading around $0.22.
- Derivatives data point to growing bearish positioning, suggesting further near-term declines.
XLM derivatives point to further downside pressure
Stellar (XLM) has traded in the red for a seventh consecutive day, declining 3.4% over the past 24 hours. This bearish performance coincides with broader weakness across the crypto market, and XLM appears likely to revisit its April lows in the near term.
Derivatives data for XLM indicate that bearish sentiment may intensify. Data from CoinGlass show a marked drop in XLM futures open interest (OI), which now stands at $118.43 million, down from $124.72 million yesterday.
The decline in OI suggests the notional value of XLM futures positions is shrinking; the total value of active positions—both long and short—is falling.
As XLM slides, long liquidation over the past 24 hours totaled $406,740, outpacing short liquidations of $6,040. The long-short ratio shows shorts rising to 53.37% today, up from 50.57% on Monday.
XLM faces risk of breaking the $0.20 psychological level
The XLM/USD 4-hour chart shows a weak bearish setup after a poor seven-day performance. The coin is trading around $0.222 and is retesting the June low at $0.217.
If bearish momentum continues, XLM could break the $0.2001 level marked by the April 7 low. Ongoing downside could target support at $0.1642, with a further test of the yearly low near $0.1600.
Technical indicators currently favor sellers. The relative strength index (RSI) sits at 35, approaching oversold territory, and the moving average convergence divergence (MACD) plunged after crossing below its signal line several hours ago.
On the flip side, if bulls regain control, XLM could reverse the bearish narrative and retest resistance at $0.2579, the level that previously acted as support.