- Stellar crypto price is trading in a strong downtrend.
- The annual inflation rate of the XLM crypto is very high.
Stellar is an open-source blockchain network designed for fast, low-cost cross-border transactions. Its native cryptocurrency, lumens (XLM), powers the network and facilitates various use cases like remittances and asset tokenization.
Created by Jed McCaleb and Joyce Kim in 2014, Stellar aims to provide financial access globally through decentralized technology.
The Stellar crypto price is witnessing an advance in its trading volume as the value of the traded volume has advanced by 14.7% in the last 24 hours. Despite this, the value of the market cap is declining. The crypto market cap further has witnessed a decline of 3.9% in the last 24 hours.
The following phenomenon of a rise in the trading volume and a decline in the market cap shows the strength of the downtrend of crypto. This also indicates that the new crypto players are willing to shorten it.
Stellar has a market cap value of $3.216B, the 31st most prominent cryptocurrency in the global crypto market. Also, the value of the traded volume for the crypto in the last 24 hours is worth $60.104M. This further results in a volume/market cap ratio of 1.81%, followed by the last 24 hours.
The crypto further has a fully diluted market cap of $5.556B, followed by a circulating supply of 28.94B XLM. Moreover, the total and maximum supply of the crypto is 50.001B XLM.
The supply inflation of the crypto is high, resulting in 8.14%, and the crypto market cap dominance is 0.14%. The price of the XLM crypto is also highly volatile, and the sentiment of the crypto is bearish, as per Coincodex.
What Does Derivatives Say About Stellar Crypto Price?
The liquidation chart of the Stellar crypto shows clear higher long liquidations over the last few months. This means that the sellers in the market have consistently dominated the price.
The trading volume of derivatives for crypto has further witnessed an advance of 22.9% in the last 24 hours. This is further followed by a slight decline of 1.28% in the open interest of the crypto.
Stellar has witnessed a higher long liquidation of $25.42K over the last 24 hours, followed by a short liquidation of $1.29K. This further results in a long/short ratio of 0.9992.
XLM Crypto Technical Analysis
The XLM crypto price has recently formed a lower high and continues to decline to lower levels. This further shows the continuation of the downtrend of the crypto.
The price of the crypto further is trading inside a falling wedge pattern. The price structure of the crypto further indicates that the price of the crypto might continue to decline. This further shows the higher possibility of the price breaking below the pattern.
XLM/USD Chart by TradingView
The price is trading below significant EMAs and has also completed the retracement to the 200-day EMA. The 50-day and the 200-day EMAs further have formed a death cross on the charts. This shows that the price of the crypto is in a strong downtrend.
The MACD metrics are also trading below the median level on the daily chart. Moreover, the MACD and the signal line are trading negatively, and the bullish histograms are fading on the daily chart.
The RSI is following a strong bearish momentum as the metrics of the RSI have hit the oversold zones, which are declining from the overbought zone. This shows that the indicator is following a bearish cycle. It has also declined below the 14-day SMA.
Summary
Stellar’s crypto price faces downward pressure due to high inflation, declining market cap, and increasing derivatives liquidations. Technical analysis suggests a continued downtrend, with the price forming lower highs and trading below key EMAs. Indicators like MACD and RSI signal bearish sentiment, supporting further potential declines.
Technical Levels:
- Support Levels: $0.0750 and $0.0920
- Resistance Levels: $0.1620 and $0.1950
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.