Stellar XLM Struggles As Geopolitical Fears Hit Crypto

Stellar is facing heavy selling pressure this week. The drop follows increased military activity in the Middle East, which has forced many investors to pull capital out of digital assets and move toward safer investments. This shift in market sentiment has left altcoins like XLM particularly vulnerable to bearish moves.

Data from the futures market confirms this cautious mood. Open interest for Stellar has fallen to roughly $182 million, a clear sign that traders are closing positions rather than entering new ones. Furthermore, funding rates have slipped into negative territory at negative 0.0021 percent. This shows that short sellers currently have the upper hand in the market.

Technically, the price remains below key moving averages, indicating that momentum is weak. XLM is currently testing a support level near $0.177. If the selling does not slow down, the price could drop toward $0.173. Traders should watch these levels closely to see if buyers step in or if the downward trend continues toward deeper support at $0.142.