The price of Stellar Lumens (XLM) has fallen by 16% from its year-to-date high amid a broader slowdown in the cryptocurrency market.
Stellar Lumens Price Decline
On July 15, the price of Stellar Lumens dropped to $0.4300, marking a 16% decline from its peak this year. This drop comes as the overall cryptocurrency market experiences a slowdown.
Technical Indicators and Correction
Last week, the token reached $0.5145, but technical indicators began reflecting a possible pullback. Overbought signals appeared on the Stochastic and RSI, indicating a correction might occur. XLM is currently trading significantly above key moving averages, which are at $0.2900 and $0.2837.
Stablecoin Data and Open Interest
Recent reports indicate that Stellar's stablecoin supply has risen to $652 million, however, upon further inspection, it was found that $441 million of this amount comes from the Franklin Onchain U.S. Government Money Fund. Excluding this fund, the actual stablecoin supply on Stellar is just $185 million. The open interest in XLM has also dropped from $520 million to $495 million, suggesting a potential price top.
The combination of cooling technical indicators and questions regarding data may drive XLM further down before any potential rebound.
