Key takeaways
- XLM extends losses to a fourth straight day as retail sentiment weakens and futures positions decline.
- The token remains under bearish technical pressure, but is holding above the 200-day moving average and showing fading momentum.
Stellar’s XLM index continues its declines for the fourth straight session on Thursday, as selling pressures intensify across the cross-border payments sector. The token continues to struggle with weak retail sentiment.
The broader correction highlights fading enthusiasm for remittance-focused crypto assets, which previously benefited from narrative-driven rallies tied to institutional adoption and real-world asset tokenization themes.
Retail sentiment cools with positioning futures
Recent derivatives data indicates a sharp decline in speculative positions across both assets.
XLM futures contracts are open interest It fell to $260.35 million on Thursday, down significantly from Monday’s peak of $358.78 million, according to CoinGlass.
The steady decline suggests that traders are trimming bullish bets formed around the optimism associated with the Depository Trust & Clearing Corporation (DTCC) partnership and the asset tokenization narrative.
Stellar holds key support, but momentum is weakening
The 4-hour chart of XLM/USD is actively bearish, with Stellar down 9.5% over the past 24 hours. Unlike XRP, Stellar still maintains a more positive technical structure, trading above $0.2110 and holding above the 200-day moving average near $0.1975.
However, short-term momentum is deteriorating. The Relative Strength Index has cooled sharply from overbought levels to around 44, indicating increasing bearish strength. Meanwhile, the MACD is approaching a potential bearish crossover as bullish momentum continues to contract.
Immediate support lies at the 200-day moving average, and a break below this level could lead to a deeper correction towards previous consolidation areas.
On the upside, a bounce from current levels could see XLM retest its resistance near $0.2579, which previously capped gains in late May.
XLM is now at a technical crossroads, as weak derivatives positions and fading retail enthusiasm weigh on sentiment.
Current market conditions remain bearish as macroeconomic conditions suggest that a sustained sell-off may continue in the near to medium term.
