Bullish On-Chain Signals Amid Price Drop
With ongoing geopolitical tensions, many investors remain cautious. Consequently, the price of Stellar (XLM) has dropped by over 25%, despite recently losing a crucial support level at $0.26.
However, recent on-chain data and derivatives market movements suggest that XLM could soon see a recovery.
Indeed, social data indicates a shift in sentiment around XLM. As negative messages have been largely outweighed by positive discussions this week, it reflects a bullish bias in the overall emotional tone. The total weighted sentiment for XLM has thus shifted from -0.775 to +0.192 this week on Santiment.
Moreover, the Stellar derivatives market has seen a significant increase in weighted open interest funding rates, a sign of a recovery over the past week. Investors appear to be betting on a trend reversal in the short term.
Catalysts for a Stellar Rally
Although technical indicators are currently bearish, several factors could trigger a rebound in XLM’s price. Firstly, the liquidation map shows the price is near the lowest liquidity area. Further selling pressure could lead to a “short squeeze,” driving the price even lower.
Since early May, XLM has been in a bearish channel and mainly below its major moving averages. From a long-term perspective, it may be undervalued. However, the short term could still see further declines, down to the bottom of the channel at $0.23.
However, signs indicate that geopolitical tensions could soon ease, especially with Trump’s ultimatum to Iran. If Iran delivers, long-stressed markets could see a reversal with a renewed sense of optimism.
Similarly, the outcomes of today’s FOMC meeting will be crucial in determining the future direction of cryptocurrencies, both majors and altcoins like Stellar.
Despite the alignment of bullish indicators, XLM seems to require a clear catalyst to support a sustainable price recovery. If market conditions improve in the coming days, Stellar could then benefit from a significant rebound after its recent 25% drop. Informed investors will closely monitor the progress of this cryptocurrency.
How to Buy Stellar (XLM) on ByBit ?
Start your journey with ByBit upon its launch in France by purchasing Stellar (XLM):
- Sign Up
Go to www.bybit.com, click on “Sign Up,” enter your email, create a password, and verify with the received code. - Verify Your Identity
Login, go to “Account” > “Verification,” and submit an ID document (passport or card) with a selfie. - Deposit Funds
Click on “Wallet” > “Deposit,” choose euros or USDT (minimum €10), and deposit. - Buy XLM
Go to “Spot Market,” select XLM/USDT, enter your amount, and confirm.
