XLM Price Plummets Below Critical Support Zone Amid Bearish Sentiment
XLM's price has fallen below a critical support zone, leaving it vulnerable to further declines. The token's long-to-short ratio has decreased to 0.90, indicating that short positions outnumber long ones.
This bearish sentiment is also reflected in the funding rate for XLM, which has turned negative. This suggests that traders are increasingly positioning for price drops.
According to technical analysis, XLM's current structure keeps its near-term outlook bearish. The token remains below its short- and medium-term Exponential Moving Averages, with a Relative Strength Index near 35 indicating weak buying momentum.
If XLM is to recover, it must first reclaim the descending trendline near $0.166. A sustained move above this level could allow buyers to challenge the horizontal resistance at $0.177.