Stellar (XLM) Plummets 1.67% as Death Cross Signals Further Decline

Stellar (XLM) is currently experiencing significant downward pressure, with analysts warning of potential declines to $0.26. The altcoin has seen a 1.67% daily decrease, accompanied by a notable 6.6% reduction in Open Interest, indicating diminished trading activity. This bearish trend is further supported by the formation of a death cross on XLM’s daily chart, where the 9-day DSMA has slipped below the 21-day DSMA. Historically, this technical indicator has acted as a reliable short-term bearish signal, suggesting further declines unless a reversal occurs.

According to analyst Ali Martinez from COINOTAG, if bulls fail to push XLM above the $0.29 level, further losses are likely. The recent performance of Stellar illustrates a concerning trend for investors, with the coin retracing from a local high of $0.33 two weeks ago to $0.28. This downward trajectory is exacerbated by a steep decline in trading volume and Open Interest, which has dropped to a low of $160 million. The diminishing participation from both speculative traders and long-term investors underscores the bearish outlook, aligning with historical patterns seen in bearish markets.

Structural weaknesses are evident in the market, with the spot market reflecting a continued bearish sentiment. Seller dominance has led to a negative Delta of 313.2k, with sellers offloading 21.95 million tokens while buyers purchased only 21.64 million. This trend emphasizes the ongoing selling pressure on the asset. The emergence of the death cross on XLM’s daily chart further signals a broader sell-off, as the coin is currently trading below both moving averages. Unless a reversal occurs, the momentum is likely to trend downward.

As the market stands, any potential rebound for Stellar would require a daily close above $0.29. Without such a movement, the risk remains high for further declines towards the next support level around $0.2653. Investors should exercise caution and closely monitor price movements, as failure to sustain levels above $0.29 may lead to deeper losses in the near future. The current market dynamics for Stellar indicate a strong bearish trend, fueled by declining volumes and market participation. This analysis highlights the critical price movements and market sentiment affecting Stellar, providing a concise overview of the recent bearish trends impacting the altcoin.