Key takeaways
XLM is down by lower than 1% and is buying and selling beneath $0.22.
The coin might retest the $0.20 assist degree if the bearish development continues.
The cryptocurrency market is having a bullish Christmas as Bitcoin and different main cryptocurrencies are within the inexperienced. Bitcoin is buying and selling above $87k after dipping beneath $86k a couple of hours in the past.
Nonetheless, some main altcoins, together with Stellar’s XLM, are nonetheless within the pink regardless of the present market circumstances. XLM is buying and selling beneath $0.22 at press time after failing to shut above the important thing resistance earlier this week.
Bearish momentum continues to develop stronger, with Open Curiosity (OI) and quick bets rising. If the bearish momentum continues, XLM might face additional promoting stress within the close to time period.
XLM derivatives information recommend bearish sentiment
The first catalyst behind XLM’s bearish efficiency is the derivatives and on-chain information. In keeping with CoinGlass, XLM’s futures Open Curiosity (OI) elevated to $112 million within the final 24 hours, up from the $30 million recorded the day prior to this.
Nonetheless, the rising OI hasn’t mirrored within the coin’s efficiency because it continues to commerce beneath a big assist degree.
Moreover, Coinglass’s long-to-short ratio for XLM reads 0.91, the best degree in practically a month. This implies that regardless of the surging OI, the bearish sentiment available in the market stays, with merchants betting on the XLM value rising.
XLM might dip beneath $0.20
The XLM/USD 4-hour chart is bearish and environment friendly because the coin has underperformed in latest days. At press time, XLM is buying and selling at $0.21 and will report additional losses within the close to time period.
If the bearish development continues, XLM might retest the December 18 low of $0.20. An in depth beneath this psychological degree might lengthen the drop towards the yearly low of $0.16, set on October 10.
The RSI on the 4-hour chart reads 43, beneath the impartial 50 degree, indicating bearish momentum is gaining traction. The Shifting Common Convergence Divergence (MACD) traces are additionally converging, indicating indecision amongst merchants.
On the flip facet, if XLM recovers, it might rally in the direction of the important thing resistance degree at $0.22 over the subsequent few hours.
