XLM stays below $0.22 as bearish momentum remains

Key takeaways

XLM is down by lower than 1% and is buying and selling beneath $0.22.
The coin may retest the $0.20 help stage if the bearish development continues. 

The cryptocurrency market is having a bullish Christmas as Bitcoin and different main cryptocurrencies are within the inexperienced. Bitcoin is buying and selling above $87k after dipping beneath $86k a couple of hours in the past. 

Nonetheless, some main altcoins, together with Stellar’s XLM, are nonetheless within the pink regardless of the present market circumstances. XLM is buying and selling beneath $0.22 at press time after failing to shut above the important thing resistance earlier this week.

Bearish momentum continues to develop stronger, with Open Curiosity (OI) and brief bets rising. If the bearish momentum continues, XLM may face additional promoting strain within the close to time period. 

XLM derivatives knowledge counsel bearish sentiment

The first catalyst behind XLM’s bearish efficiency is the derivatives and on-chain knowledge. In accordance with CoinGlass, XLM’s futures Open Curiosity (OI) elevated to $112 million within the final 24 hours, up from the $30 million recorded the day before today. 

Nonetheless, the rising OI hasn’t mirrored within the coin’s efficiency because it continues to commerce beneath a major help stage. 

Moreover, Coinglass’s long-to-short ratio for XLM reads 0.91, the best stage in almost a month. This implies that regardless of the surging OI, the bearish sentiment available in the market stays, with merchants betting on the XLM worth rising. 

XLM may dip beneath $0.20

The XLM/USD 4-hour chart is bearish and environment friendly because the coin has underperformed in latest days. At press time, XLM is buying and selling at $0.21 and will document additional losses within the close to time period. 

If the bearish development continues, XLM may retest the December 18 low of $0.20. A detailed beneath this psychological stage may lengthen the drop towards the yearly low of $0.16, set on October 10.

The RSI on the 4-hour chart reads 43, beneath the impartial 50 stage, indicating bearish momentum is gaining traction. The Transferring Common Convergence Divergence (MACD) strains are additionally converging, indicating indecision amongst merchants.

On the flip facet, if XLM recovers, it may rally in direction of the important thing resistance stage at $0.22 over the subsequent few hours.