Will XLM revisit $0.136 low as market turns bearish? Check forecast

Bitcoin, Ether, and XRP are all in the red as the broader cryptocurrency market shed billions in market cap over the last 24 hours

The bearish performance has spread to other leading cryptocurrencies, with Stellar (XLM) down by nearly 2%

XLM is trading below $0.1600 at the time of writing on Wednesday, extending its correction for the fifth consecutive day.

The rising short bets and declining Open Interest (OI) in the derivatives market support the current bearish price action. Furthermore, the momentum indicators suggest a deeper correction for XLM in the upcoming days.

XLM slips below $0.160 on poor derivatives data

XLM is down by nearly 2% in the last 24 hours and is now trading at $0.153 per coin. The bearish performance is supported by Stellar’s derivatives data.

According to CoinGlass, XLM’s long-to-short ratio now reads 0.77, its lowest level in over a month.

The ratio staying below one indicates a bearish sentiment in the market, as more traders are betting on XLM’s price to fall.

Furthermore, XLM’s futures Open Interest (OI) drops to $85.86 million on Wednesday, its lowest level since mid-November 2024

The OI has been steadily falling since the January 6 high of $166.99 million. The decline in OI suggests waning investor participation and projects a bearish outlook.

Will XLM retest the $0.136 support level?

The XLM/USD 4-hour chart is bearish and efficient as XLM has underperformed in recent weeks.

Currently, XLM is trading below the 9-day Simple Moving Average (SMA) slopes, suggesting a strong bearish bias

The bearish performance comes as XLM failed to surpass the $0.161 near-term resistance earlier this week

The momentum indicators suggest that XLM could face further downward movement over the next few hours and days.

The Moving Average Convergence Divergence (MACD) indicator remains below the Signal line and under the zero mark on the 4-hour chart, indicating a fading bearish momentum

The Relative Strength Index (RSI) sits around 39, approaching the oversold region, where a corrective bounce could emerge

If the daily candle closes below the 9-day SMA, XLM could record further bearish movement in the near term. If the trend continues, the bears would keep the downside in focus toward Friday’s low of $0.136.

On the flip side, if the bulls recover control, XLM could rally towards the $0.1717 weekly high in the near term. An extended rally could see XLM reclaim the $0.18370 for the first time since February 2nd.

The current market conditions remain extremely bearish, with Bitcoin and other leading cryptocurrencies currently in the red.

If XLM were to embark on a recovery, it would be slow, as the trading volume in the market remains poor.

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