- XLM dropped 1.67% daily, with Open Interest falling 6.6% and derivatives volume down 62.7% to $97 million.
- A death cross formed as the 9-day DSMA crossed below the 21-day DSMA, confirming a bearish shift.
Since rallying to hit a local high of $0.33 two weeks ago, Stellar [XLM] suffered significant losses, dropping to $0.28.
In fact, the 1.67% daily dip has been accompanied by weakness in the derivatives market, raising fresh concerns over demand.
As such, volume sharply declined, dropping by 62.7% to $97 million, while Open Interest was down by 6.6%, reaching a low of $160 million.
Naturally, such a sharp pullback signals reduced participation from both speculators and investors.
Source: Ali on X
Analyst Ali Martinez noted this structural weakness and warned of a potential breakdown.
According to him, XLM may be exiting an ascending channel, usually a bearish sign that implies trend exhaustion.
Source: Coinalyze
Moreover, spot markets reinforced the bearish tone.
Seller dominance is clear in the spot market, with XLM sellers offloading 21.95 million tokens compared to 21.64 million bought by buyers, resulting in a negative Delta of 313.2k.
This indicates strong selling pressure.
Martinez suggested that this bearish trend could lead the altcoin to drop to $0.26.
According to AMBCrypto’s analysis, XLM flashed a ‘death cross’ on the daily chart.
Source: TradingView
The 9-day DSMA slipped below the 21-day DSMA—an often-reliable short-term bearish trigger.
With the current market prices sitting below both MAs, the downward momentum could persist unless the market reclaims a price above $0.291.
Therefore, if the current selling pressure continues in the market, strengthening downward pressure even further, the altcoin will find the next support around $0.2653.
To invalidate this bearish move, XLM needs a daily close above $0.29. If bulls fail to push the altcoin above this level, we could see XLM make more losses.
