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- Stellar (XLM) is cheap as a strong growth.
- Denivatives indicate a bearish position, with long to short values below 1
- Positive earnings signals that investors are still willing to maintain long positions despite the pullback.
Stellar (XLM) remains under pressure on Tuesday as the currency extends its recent pullback.
Although prices have weakened, derivatives and metrics on the chain show that business sentiment has not changed.
In fact, market participants appear to be optimistic, with traders balancing hopes for a potential recovery to counter short-term weakness.
The data collected shows different opinions
Recent metrics show mixed signals for the digital economy. According to CoinGlass, The long and short ratio of XLM it stands at 0.84, also close to a one-month low.
A ratio below 1 indicates that short positions outweigh long positions, which indicates that traders are betting too much.
However, currency rates tell a different story. XLM’s cash flow rate is 0.0058%, which shows that the bulls still pay the bears.
Positive currency prices mean that traders with long positions are paying off those with short positions, indicating that the bullish position is outweighing the bearish sentiment among participants.
The difference between positions and funds shows that many investors remain optimistic despite the recent correction.
Stellar technical features: XLM holds above key support
Stellar continues to trade above its short-term trend, maintaining a bearish bias despite recent weakness.
XLM is trading near $0.193, holding above the 50-day EMA at $0.1922 and the 100-day EMA at $0.1872
However, the indicator remains below the 200-day EMA at $0.1985 and the 61.8% Fibonacci retracement at $0.2001
These values represent the long-term resistance to current recovery. Technical indicators continue to lean slightly positive. The RSI remains close to 48, indicating bearish strength, while the MACD remains above zero, meaning that the bullish trend has not faded.
When the bulls regain control, XLM may rush to $0.1985 (200-day EMA) and $0.2001 (61.8% Fibonacci retracement).
A daily candle that closes above these levels would allow XLM to extend its rally to the $0.2188, $0.2376, and $0.2607 resistance zones.
However, if the trend continues, XLM may drop below $0.1922 (50-day EMA) and $0.1872 (100-day EMA) soon.
A firm close below these levels would reveal the lower levels at $0.1774, $0.1735 (78.6% Fibonacci retracement), and $0.1421 (major structural support)
A hold above the 50-day EMA could help XLM recover temporarily, while a break below $0.1872 could backfire in the future in favor of sellers.
