Headline: Stellar (XLM) Faces Continued Downtrend — Derivatives Point to More Weakness Ahead Stellar’s native token XLM extended its slump for a seventh straight day, slipping 3.4% in the past 24 hours as the wider crypto market remains under pressure. At press time XLM is trading around $0.222, revisiting the June low near $0.217 — and derivatives activity suggests the pullback may have further to run. Why market structure matters - Futures open interest (OI) for XLM is declining, according to CoinGlass, falling to about $118.43 million from $124.72 million yesterday. Lower OI indicates the overall notional value of active futures positions (both longs and shorts) is shrinking, which can signal reduced conviction or position trimming ahead of larger moves. - Liquidations have been heavily one-sided: long liquidations totaled roughly $406,740 in the last 24 hours versus about $6,040 in short liquidations. That imbalance shows buyers have borne the brunt of recent volatility. - The long-to-short split has shifted toward bears, with short positions rising to 53.37% today from 50.57% on Monday. Technical picture: momentum favors sellers - The 4-hour XLM/USD chart is in bearish territory. If selling continues, XLM could test — and potentially break — the $0.2001 level (the April 7 low). A deeper decline would target support at $0.1642 and the annual low around $0.1600. - Momentum indicators support the downside case: the Relative Strength Index (RSI) sits near 35, approaching oversold conditions, while the MACD recently crossed below its signal line and is trending downward, which typically signals accelerating bearish momentum. Upside scenario - A recovery in buying pressure could flip the setup, with XLM first needing to reclaim $0.2579 — a prior support now acting as resistance — to shift the short-term narrative back toward bulls. Bottom line Derivatives metrics and technical indicators are currently aligned with a bearish outlook for XLM, with falling open interest and lopsided long liquidations suggesting lower prices could be tested. Traders should watch the $0.200 and $0.164 support levels, plus whether the market can retake $0.2579 to signal a reversal. Read more AI-generated news on: undefined/news