Key takeaways

XLM continues to trade below several major moving averages. Mixed derivatives and on-chain signals reveal uncertainty among traders, leaving XLM exposed to further losses despite tentative signs of improving sentiment.

CoinGlass derivatives data points to a more bearish outlook for Stellar. XLM’s long-to-short ratio was notably weaker at 0.92, approaching its lowest level in more than a month. 

A reading below one indicates that short positions outnumber longs, reflecting expectations of further downside.

Funding rates for both tokens have improved despite their weak price performance. XLM’s funding rate climbed to 0.0092%. 

Positive funding means traders holding long positions are paying short sellers, generally indicating bullish demand in the perpetual futures market.

The figures suggest that some traders are willing to maintain bullish exposure while prices remain under pressure. However, continued declines could leave those long positions vulnerable to liquidations.

CryptoQuant data presents a mixed picture for Stellar. XLM’s futures market shows selling-side dominance across both spot and futures markets. 

The presence of large whale orders adds uncertainty, but the broader data continues to favor caution while sellers control trading activity.

Stellar traded near $0.160 on Thursday, maintaining a bearish short-term outlook below all three major EMAs.

The 50-day EMA is positioned at $0.176, while the 100-day and 200-day EMAs stand at $0.180 and $0.190, respectively. 

Their convergence above the current price creates a dense resistance zone that buyers must overcome before a meaningful recovery can develop.

Momentum indicators also remain weak. XLM’s RSI is near 33, placing it close to oversold territory, while the MACD continues to trade in negative territory.

Although the low RSI could eventually support a relief rally, it does not by itself confirm that XLM has reached a bottom.

The first important resistance zone for Stellar sits between the 50-day EMA at $0.176 and horizontal resistance at $0.177.

A break above this area could ease selling pressure and open the way toward the 100-day EMA at $0.180. Bulls would then need to clear the 200-day EMA at $0.190 to establish a stronger recovery.

If XLM remains below these levels, the bearish outlook will persist. Continued selling could send the token toward its next meaningful horizontal support at $0.142, where buyers may attempt to defend the price.

For now, XRP’s slight bullish positioning provides limited recovery hope, but both tokens remain technically vulnerable while trading below their major moving averages.

The post Stellar’s XLM token slides below key moving averages appeared first on CoinJournal.

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