Key takeaways
- XLM extends losses for a fourth consecutive day as retail sentiment cools and futures positioning contracts.
- The token faces bearish technical pressure but remains above its 200-day EMA, with momentum indicators fading.
Stellar’s XLM fell for the fourth straight session on Thursday as selling intensified across the cross-border payments sector. The token is contending with weakening retail demand and a noticeable pullback in speculative activity.
This broader correction reflects diminished enthusiasm for remittance-focused crypto assets that previously rallied on narratives around institutional adoption and real-world asset tokenization.
Retail sentiment cools as futures positioning contracts
Derivatives data show a clear unwind in speculative positioning across the market.
XLM futures open interest declined to $260.35 million on Thursday, down sharply from Monday’s peak of $358.78 million, according to CoinGlass. The fall in open interest points to traders trimming bullish exposure that built up around the DTCC partnership and tokenization narratives.
Stellar holds key support, but momentum weakens
On the 4-hour XLM/USD chart, price action is decisively lower: the token is down roughly 9.5% over the past 24 hours. Unlike some peers, Stellar still maintains a relatively constructive technical profile by trading above the $0.2110 area and staying above its 200-day EMA near $0.1975.
Short-term momentum, however, is deteriorating. The RSI has fallen from overbought territory to around 44, signaling growing bearish pressure, while the MACD is nearing a potential bearish crossover as upward momentum contracts.
Immediate support rests at the 200-day EMA; a decisive break below that level could open the door to a deeper correction toward prior consolidation zones. On the upside, a recovery from current levels could push XLM to retest resistance near $0.2579, which capped gains in late May.
XLM sits at a technical crossroads as waning derivatives positioning and reduced retail enthusiasm weigh on sentiment. Given the current macro backdrop, the near- to medium-term outlook remains cautious and the ongoing selloff may persist unless buying pressure returns.