- Stellar (XLM) has dropped from $0.33 to $0.28, with trading volume plunging 62.7% and open interest falling 6.6%, signaling weak investor participation.
- Bearish indicators are stacking up, including a potential breakdown from an ascending channel, a negative spot market Delta, and a “death cross” on the daily chart.
- If XLM can’t reclaim $0.29 soon, analysts warn it could drop further toward the next support at $0.2653, with selling pressure showing no signs of slowing yet.
Stellar (XLM) isn’t looking too hot right now. After peaking near $0.33 just a couple weeks back, the altcoin’s been on a steady slide—now down to $0.28. That’s a noticeable drop, and it’s not just the price that’s feeling heavy. Derivatives and spot markets are both flashing warning signs.
Volume Tanks, Open Interest Follows
In the past 24 hours alone, XLM slipped another 1.67%, but what’s more telling is the drying up of volume. Trading activity fell off a cliff—down 62.7% to just $97 million. Open Interest also pulled back by 6.6%, landing at $160 million. That kind of slowdown screams one thing: folks are pulling out, both traders and longer-term holders alike.
Analyst Warns of Breakdown
Crypto analyst Ali Martinez chimed in, pointing out that XLM might be breaking below an ascending channel—a bearish signal that often hints the current trend’s run its course. And it’s not just charts throwing up red flags. Over in the spot market, sellers are clearly dominating. Around 21.95 million tokens were dumped, while only 21.64 million were scooped up. That leaves a negative Delta of over 313K, meaning there’s a clear edge to the sell-side.
Death Cross and Next Stops
If that wasn’t enough, AMBCrypto’s chart analysis showed XLM just printed a classic “death cross” on the daily timeframe. The 9-day DSMA dipped below the 21-day DSMA. Not great. Price action is already chilling below both averages, and unless XLM can snap back above $0.291 soon, it’s probably heading lower.
Short-term support sits around $0.2653, but if buyers don’t show up soon, things might get even shakier. A daily close above $0.29 is basically the line in the sand for bulls. If that doesn’t happen? Well, brace for more downside.
