Key takeaways
Stellar has fallen below a critical support zone.
The long-to-short ratio for XLM has declined to 0.94 and 0.90, respectively.
The funding rate for XLM has turned negative, reflecting stronger demand for short positions.
XLM continues to underperform
Stellar (XLM) remains under pressure on Tuesday after recording modest declines during the previous session. XRP is drifting toward the psychologically important $1.00 level, while XLM has slipped below a key support zone.
Weakening derivatives-market indicators are limiting the prospects of an immediate recovery for XLM. Declining long-to-short ratios, negative funding rates and rising open interest suggest that traders are increasingly positioning for further price declines.
XLM’s long-to-short ratio has fallen to 0.90 on Tuesday, approaching its lowest level in more than a month.
A ratio below one indicates that short positions outnumber long positions, meaning more traders are betting that the assets will decline. The current readings suggest that bearish sentiment is particularly strong among XLM traders.
The falling ratios also indicate that confidence in a near-term rebound is weakening as both assets struggle to recover from their recent losses.
XLM technical forecast: XLM could dip to $0.1500
Stellar (XLM) trades near $0.161 on Tuesday, extending its decline below the short- and medium-term Exponential Moving Averages. The current structure keeps XLM’s near-term outlook bearish as buyers struggle to regain control.
The token remains below the descending trendline breakout level at $0.166, which now acts as immediate resistance. Its Relative Strength Index stands near 35, indicating weak buying momentum without placing XLM in technically oversold territory.
The Moving Average Convergence Divergence indicator also remains below its zero line, reinforcing the downside bias as XLM consolidates beneath its key moving averages.
If a recovery begins, XLM must first reclaim the descending trendline near $0.166. A sustained move above that level could allow buyers to challenge the horizontal resistance at $0.177.
The 50-day EMA at $0.178 and the 100-day EMA at $0.181 create a concentrated resistance zone that could limit further gains. Above these levels, the 200-day EMA at $0.193 represents a broader bearish pivot. Reclaiming this moving average would be necessary to signal a more meaningful change in trend.
On the downside, XLM’s next major support is located at $0.142. A decisive break below this level could accelerate the current decline and expose the token to further losses before buyers attempt to establish a new price floor.
