Stellar's token XLM fell for the fourth consecutive trading day on Thursday, putting pressure on assets related to cross-border payments. The trading fervor previously fueled by institutional partnerships and asset tokenization is cooling, with reduced retail investor participation contributing to the continued price decline.
Futures positions contracted significantly.
Derivatives data reflects a withdrawal of speculative positions. CoinGlass data shows that open interest in XLM futures has fallen to $260.35 million, a significant drop from Monday's high of $358.78 million.
This means that some long positions previously built around expectations of a DTCC partnership and the tokenization narrative are being liquidated. Decreasing positions typically indicate weakening confidence among traders in continued short-term upward movement, leading to a decline in market sentiment.
- Open interest in futures contracts stood at $358.78 million on Monday.
- Futures open interest fell to $260.35 million on Thursday.
- The stock price has fallen by 9.5% in the past 24 hours.
Still holding above the 200-day moving average
From a price perspective, XLM is showing short-term weakness, but has not yet broken through key medium-term support. The report mentions that XLM is currently still above $0.2110, and also above the 200-day exponential moving average around $0.1975.
This level is considered a key support area. If the 200-day moving average is breached, the price could fall further into the previous consolidation range. If a rebound occurs, the first resistance level to retest is around $0.2579.
Short-term momentum continues to cool down.
In terms of technical momentum, the XLM's Relative Strength Index (RSI) has fallen from its previous high to around 44, indicating weakening buying power and increasing selling pressure. Meanwhile, the MACD is also nearing a new bearish crossover, suggesting that upward momentum is still contracting.
Overall, while XLM has not yet broken through its medium-term support, weakening retail demand, declining futures positions, and weakening short-term indicators are collectively weighing on market performance. Given the cautious macroeconomic environment, the current correction has not yet shown clear signs of ending.
