Prices for Stellar Lumens (XLM) continue to decline. Recent data shows the token has reached a critical support level at $0.2175 amid short-selling pressure.
Price Decline and Support Level
Stellar Lumens (XLM) has dropped 35% from its May peak and is currently down 62% from its highest price in 2024. The current support level matches the April low and aligns with the lower boundary of a descending triangle, which often indicates continuation of the bearish trend.
Financial Metrics and Short-Selling Pressure
The funding rate for Stellar futures has remained in negative territory for most of the time since May and has dropped to its lowest level since June 30. A negative funding rate reflects a market dominated by short positions, undermining buying momentum. XLM has fallen below the 61.8% Fibonacci retracement level and is now trading below both the 50-day and 100-day moving averages.
Active Users and Transactions
Despite the negative price action, Stellar's network activity remains robust. In June, the platform recorded 197 million operations, with stablecoin supply reaching a record $667 million. Moreover, the weekly transaction volume increased by 11%, totaling 18.2 million, while active addresses rose by 10% to 146,700.
The situation with Stellar Lumens remains complex, with concerns of further declines. However, the strong activity on the network indicates positive trends that may bode well for market sentiment.
