Stellar (XLM) Faces Bearish Pressure After Recent Losses
Stellar (XLM) broke down from a falling channel pattern after two days of losses. A Death Cross pattern formed on the daily chart, signaling potential further declines. The cryptocurrency, seen as a rival to XRP, risks more losses due to weak retail demand.
Traders Lose Interest in Stellar Amid Market Downturn
Stellar is losing retail interest as the crypto market turns bearish. Data from CoinGlass shows XLM futures open interest dropped to $118.98 million on Wednesday. This is the lowest since mid-April. Lower open interest means traders are reducing leverage, pulling out funds, or facing liquidations.
Analyst Peter Brandt Sees More Downside for Stellar
Market expert Peter Brandt pointed out a breakdown from a descending triangle pattern on Stellar’s daily chart. This continues a larger triangle breakdown seen in early October. Brandt’s chart does not specify targets but shows growing bearish momentum. The Average Directional Index (ADX) rose to 37, confirming the downtrend.
Stellar Price Could Fall to $0.2200 Support
At press time, Stellar trades just above $0.27, gaining slightly after recent losses. The price breakdown of the falling channel risks pushing XLM toward the $0.2200 support level. On Monday, the 50-day EMA fell below the 200-day EMA, creating a Death Cross. This is a strong bearish signal.
Other indicators confirm the bearish trend. The Relative Strength Index (RSI) is near 30, showing strong selling pressure. The MACD also stays below its signal line, indicating increasing downward momentum.
If Stellar rises above the June 11 high of $0.2851, it may rally to the $0.30 level. This could offer some relief to bulls.
