XLM extends losses as weak retail demand weighs on sentiment

Key takeaways

• XLM extends its loss for a fourth straight day as retail sentiment weakens and futures positioning declines. 
• The token remains under bearish technical pressure, but is holding above its 200-day EMA and showing fading momentum. 

Stellar’s XLM extends its declines for a fourth consecutive session on Thursday, as selling pressure intensified across the cross-border payments sector. The token continues to struggle with weakening retail sentiment.

The broader correction highlights fading enthusiasm for remittance-focused crypto assets, which had previously benefited from narrative-driven rallies tied to institutional adoption and real-world asset tokenization themes.

Retail sentiment cools as futures positioning contracts

Recent derivatives data points to a sharp unwind in speculative positioning across both assets.

XLM futures open interest dropped to $260.35 million on Thursday, down significantly from Monday’s peak of $358.78 million, according to CoinGlass. 

The steady decline suggests traders are scaling back bullish bets that had formed around optimism linked to the Depository Trust & Clearing Corporation (DTCC) partnership and asset tokenization narrative.

Stellar holds key support, but momentum weakens

The XLM/USD 4-hour chart is bearish and efficient as Stellar is down 9.5% in the last 24hours. Unlike XRP, Stellar is still maintaining a more constructive technical structure, trading above $0.2110 and holding above its 200-day EMA near $0.1975.

However, short-term momentum is deteriorating. The RSI has cooled sharply from overbought levels to around 44, signaling a growing bearish strength. Meanwhile, the MACD is approaching a potential bearish crossover as upward momentum continues to contract.

Immediate support is anchored at the 200-day EMA, and a breakdown below this level could trigger a deeper correction toward prior consolidation zones.

On the upside, a rebound from current levels could see XLM retest resistance near $0.2579, which previously capped gains in late May.

XLM now sits at a technical crossroads, with weakening derivatives positioning and fading retail enthusiasm weighing on sentiment.

The current market conditions remain bearish as macroeconomic conditions suggest that the ongoing selloff could continue in the near to medium term.