adminIn recent developments, key takeaways XLM is down by less than 1% and is trading below $0.22. The coin could retest the $0.20 support level if the bearish trend continues. The cryptocurrency market is having a bullish Christmas as Bitcoin and other major cryptocurrencies are in the green. Bitcoin is trading above $87k after dipping below $86k a few hours ago. However, some major altcoins, including Stellar’s XLM, are still in the red despite the current market conditions. XLM is trading below $0.22 at press time after failing to close above the key resistance earlier this week. Bearish momentum continues to grow stronger, with Open Interest (OI) and short bets rising. If the bearish momentum continues, XLM could face further selling pressure in the near term. XLM derivatives data suggest bearish sentiment The primary catalyst behind XLM’s bearish performance is the derivatives and on-chain data. According to CoinGlass, XLM’s futures Open Interest (OI) increased to $112 million in the last 24 hours, up from the $30 million recorded the previous day. However, the increasing OI hasn’t reflected in the coin’s performance as it continues to trade below a significant support level. Furthermore, Coinglass’s long-to-short ratio for XLM reads 0.91, the highest level in nearly a month. This suggests that despite the surging OI, the bearish sentiment in the market remains, with traders betting on the XLM price rising. XLM could dip below $0.20 The XLM/USD 4-hour chart is bearish and efficient as the coin has underperformed in recent days. At press time, XLM is trading at $0.21 and could record further losses in the near term. If the bearish trend continues, XLM could retest the December 18 low of $0.20. A close below this psychological level could extend the drop toward the yearly low of $0.16, set on October 10. The RSI on the 4-hour chart reads 43, below the neutral 50 level, indicating bearish momentum is gaining traction. The Moving Average Convergence Divergence (MACD) lines are also converging, indicating indecision among traders. On the flip side, if XLM recovers, it could rally towards the key resistance level at $0.22 over the next few hours. The post Stellar price forecast: XLM stays below $0.22 as bearish momentum remains appeared first on CoinJournal.
Looking closer, market participants highlight key drivers such as liquidity flows, macro risk appetite, regulatory headlines, and on-chain activity. Short-term swings often reflect liquidation cascades and funding imbalances, while spot volumes and exchange inflows set the broader tone.
Analysis: The medium-term picture hinges on whether buyers can sustain momentum without excessive leverage. If flows continue favoring majors like BTC and ETH, altcoins could experience a staggered rotation instead of a broad-based rally. Meanwhile, policy clarity in key jurisdictions remains a decisive catalyst; clearer rules typically compress risk premia and attract institutional allocations. Beyond price action, on-chain metrics such as active addresses, fees, and stablecoin velocity help validate trend strength.
Outlook: Over the next few weeks, observers will watch price acceptance above recent resistance, derivatives positioning, and ETF-related flows. A constructive setup would feature rising spot demand, contained leverage, and improving breadth across sectors such as DeFi, infrastructure, and Layer-2 ecosystems.
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