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- Stellar (XLM) extends losses as US-Iran tensions fuel market volatility.
- XLM is looking close to important support around $0.177.
- XLM may test support near $0.173 if selling continues.
Stellar (XLM) remained under pressure on Tuesday as investors reduced exposure to threats to the stock after escalating tensions between the United States and Iran.
The broader cryptocurrency market weakened after new military developments in the Middle East escalated, pushing investors to safe havens while weighing on altcoins.
The US-Iran escalation is reducing investor confidence
According to reports, the US Central Command (CENTCOM) has confirmed that the American military has also struck Iranian missiles while keeping more than 50,000 US troops across the Middle East.
Iranian state media reported strikes in southern Iran, where the Islamic Revolutionary Guard Corps (IRGC) said it had intercepted two large tankers in the Strait of Hormuz, accusing them of violating maritime warnings.
The IRGC warned that continued military operations in the region would delay the reopening of the waterway and disrupt international power.
Central political tensions pushed West Texas Intermediate (WTI) crude oil past $80 a barrel, strengthening volatility across financial markets and putting additional risk on cryptocurrencies such as XLM.
Futures market data shows that traders are becoming cautious on both issues.
According to CoinGlass, XLM interest fell to about $182.21 million, extending the decline from the high levels recorded in June.
Falling interest rates along with falling prices often indicate that traders are closing positions rather than opening new ones, indicating market weakness and low confidence.
The exchange rate has also changed to XLM and now reads -0.0021%. Non-cash funds show that short sellers are paying off long positions, which indicates the importance of bearish positions in the general market.
Stellar (XLM) price analysis: Momentum remains weak
Stellar continues to struggle as it trades near $0.179, below its major moving averages.
Current levels include the 50-day EMA at $0.186, the 100-day EMA ($0.190), and the 200-day EMA ($0.196).
The RSI is still near 41, indicating a bearish trend, while the MACD continues in the negative territory, indicating that the buyers have not yet regained control.
The first major support is near $0.177, followed by the 78.6% Fibonacci retracement level around $0.173.
If the bearish force strengthens, XLM may drop to the support area near $0.142.
When buyers return, resistance is expected at $0.186, $0.190, and $0.196, with additional barriers near $0.200, $0.218, $0.237, and $0.260.
