XLM Might Be Cooling Off Or Just Warming Up Again

Stellar (XLM) has retraced to the $0.42-$0.44 range after a significant 110% price increase in one week. This pullback occurred as Bitcoin dropped nearly 5%, pulling down the broader market. While sentiment remains positive with funding rates still favorable for long traders, approximately $20 million in open interest was liquidated as XLM fell around 10.6%. Spot buying is still present, and the daily chart shows bullish indicators, but a short-term 4-hour chart shows potential weakness with a bearish divergence. If Bitcoin remains stable above $116.8K, XLM could rebound. However, if Bitcoin declines further, XLM may experience further losses.