Stellar price forecast: XLM stays below $0.22 as bearish momentum remains

2025-12-25 12:56:17

Source: CryptoNewsNet Original Title: Stellar price forecast: XLM stays below $0.22 as bearish momentum remains Original Link:

Key Takeaways

XLM is down by less than 1% and is trading below $0.22.
The coin could retest the $0.20 support level if the bearish trend continues.

Market Context

The cryptocurrency market is experiencing bullish momentum as Bitcoin and other major cryptocurrencies are in the green. Bitcoin is trading above $87k after dipping below $86k earlier.

However, some major altcoins, including Stellar’s XLM, remain in the red despite current market conditions. XLM is trading below $0.22 after failing to close above a key resistance level earlier this week.

Bearish momentum continues to strengthen, with Open Interest (OI) and short bets rising. If this bearish momentum persists, XLM could face further selling pressure in the near term.

XLM Derivatives Data Suggests Bearish Sentiment

The primary catalyst behind XLM’s bearish performance is derivatives and on-chain data. XLM’s futures Open Interest (OI) increased to $112 million in the last 24 hours, up from $30 million the previous day.

However, the increasing OI hasn’t reflected in the coin’s price performance as it continues to trade below a significant support level.

The long-to-short ratio for XLM stands at 0.91, the highest level in nearly a month. This suggests that despite surging OI, bearish sentiment persists in the market, with traders betting on XLM price declines.

Price Analysis: XLM Could Dip Below $0.20

The XLM/USD 4-hour chart shows bearish efficiency as the coin has underperformed in recent days. At present, XLM is trading at $0.21 and could record further losses in the near term.

XLM/USD 4H Chart

If the bearish trend continues, XLM could retest the December 18 low of $0.20. A close below this psychological level could extend the decline toward the yearly low of $0.16, set on October 10.

The RSI on the 4-hour chart reads 43, below the neutral 50 level, indicating bearish momentum is gaining traction. The Moving Average Convergence Divergence (MACD) lines are converging, indicating indecision among traders.

Potential Recovery Scenario

On the upside, if XLM recovers, it could rally towards the key resistance level at $0.22 over the next few hours.

XLM0.66%

BTC0.18%

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