After a 100% surge last week, Stellar (XLM) is showing signs of cooling down, as recent data points to a sharp drop in market interest. Here’s a detailed look at the latest developments surrounding XLM and its potential price action.
---
📉 Declining Open Interest: A Sign of Waning Momentum
Open Interest (OI), a measure of derivative market activity, has seen a dramatic drop from an all-time high of $339 million to $209 million.
This $130 million reduction in OI suggests that many positions have been closed, signaling diminishing buying pressure.
In line with this, XLM's price has dropped by 10% over the past 24 hours, signaling the cooling of the bullish momentum.
---
📊 Social Dominance Decline: Less Buzz Around XLM
Social dominance (a metric that tracks the volume of discussions around XLM compared to the top 100 cryptocurrencies) has plummeted from 3.13% to 1.73%.
This decline shows that market participants are shifting their focus elsewhere, leading to reduced demand and potentially less retail interest in XLM.
---
🔍 Technical Indicators: A Potential Retracement to $0.28?
The Money Flow Index (MFI) has pulled back from overbought territory, which historically signals an impending price correction.
With $0.45 acting as a crucial support level, XLM may struggle to maintain its recent price above this mark.
If the selling pressure persists, XLM could face a retracement to $0.28 or even $0.17 if further support levels fail.
---
💡 Can XLM Bounce Back?
The decline in both Open Interest and social dominance suggests that the bullish rally may be over. However, a revival in buying pressure across both the derivatives and spot markets could push XLM back toward $0.64, invalidating the bearish outlook.
📈 What’s Next for XLM?
If the market continues its downturn, XLM may face significant challenges maintaining price levels above $0.45.
However, with a shift in market dynamics or a potential resurgence in interest, XLM could see a recovery, potentially testing higher levels once again.
---
📢 Your Turn!
What do you think about XLM's recent performance? Is it time to take profits or are you waiting for a bounce back? Drop your thoughts below and let’s discuss!
#GDPSteadyPCE2.1Down #MarketBuyOrHold? #BinanceHODLerTHE #XRPMarketShift #Write2Earn!
