Stellar News Today: XRP's Staking Surge Shadows XLM as Death Cross Deepens Bearish Outlook

Stellar (XLM) faces a critical juncture as the cryptocurrency enters a bearish phase marked by a "Death Cross" technical pattern, raising concerns of a potential 15% price correction. The 50-day Exponential Moving Average (EMA) recently crossed below the 200-day EMA, a bearish signal historically associated with prolonged downtrends. Concurrently, retail demand for XLM has waned, with futures open interest declining to $118.98 million-a level last seen in mid-April-indicating traders are reducing exposure or facing liquidations .

Analyst Peter Brandt, a veteran market observer, has flagged the breakdown of a descending triangle on XLM's daily chart, reinforcing the bearish outlook. While Brandt's analysis does not specify a price target, the Average Directional Index (ADX) hitting 37 underscores intensifying downward momentum. The cryptocurrency, trading above $0.2700 as of press time, risks a further pullback to the $0.2200 support zone if the falling channel pattern confirms. This level would represent a roughly 15% decline from current prices .

Technical indicators corroborate the bearish bias. The Relative Strength Index (RSI) stands at 30, signaling extreme selling pressure, while the Moving Average Convergence Divergence (MACD) remains below its signal line, amplifying the negative trend. Traders will closely watch whether XLM can reclaim the $0.2851 resistance level-the high from June 11-as a potential catalyst for a rebound toward the psychological $0.3000 threshold .

The broader ecosystem for XRP Ledger (XRPL) innovations may indirectly influence XLM's trajectory. According to a Cryptopolitan report, XRP Tundra, a project challenging Stellar's cross-border utility, recently launched native staking via Cryo Vaults, offering XRP holders yields of up to 20% APY. While this development primarily targets XRP, it highlights evolving competition in the blockchain space for yield-generating assets, potentially diverting interest from XLM's inflation-based staking model.

Despite the near-term risks, market participants emphasize that XLM's long-term prospects depend on broader crypto adoption and institutional interest. For now, however, the Death Cross and weakening retail sentiment paint a cautionary picture. Investors are advised to monitor key support and resistance levels, with a breakout above $0.2851 offering a glimmer of hope for a reversal in the downward trend .