XLM retests the June low, eyes deeper
Key receivers
Stellar's XLM is down 3.4% and is now trading around $0.22.
Derivatives data shows a bearish accumulation of positions, with further declines expected in the near term.
XLM derivatives suggest further bearish price action
Stellar (XLM) is trading in the red zone for the seventh consecutive day, losing 3.4% in the last 24 hours. The bearish performance comes as the broader cryptocurrency market continues to bleed, with XLM now expected to retest the April lows in the near term.
XLM derivatives data shows that the bullish trend may grow further. The information obtained CoinGlass XLM futures open interest (OI) fell sharply to $118.43 million, down from $124.72 million recorded yesterday.
A declining OI suggests a decline in the futures price of XLM, as the overall price of all active positions (long and short) is currently declining.
As XLM continues to decline, long liquidity over the past 24 hours has totaled $406,740, outpacing short liquidity by $6,040. The long to short ratio chart shows that short positions increased to 53.37% today, up from 50.57% recorded on Monday.
XLM may drop below the $0.20 psychological level.
The XLM/USD 4-hour chart is weak and ineffective as Stellar has underperformed over the past seven days. The coin is currently trading at $0.222, retesting the June low of $0.217.
If the market trend continues, XLM could drop below the $0.2001 level recorded on April 7th. An extended bearish trend could see the cross-border currency exchange token see a support objective at $0.1642, followed by a yearly low of $0.1600.
Currently, technical indicators suggest that sellers are in control. The Relative Strength Index (RSI) is at 35, pointing to an oversold zone. Furthermore, the Moving Average Convergence Divergence (MACD) is falling sharply after crossing below the signal line a few hours ago.
However, if the bulls regain control, XLM could reverse its bearish narrative and test the $0.2579 support-turned-resistance.
