Stellar price risks a deeper correction toward $0.142

Key takeaways

• Stellar has fallen below a critical support zone.
• The long-to-short ratio for XLM has declined to 0.94 and 0.90, respectively.
• The funding rate for XLM has turned negative, reflecting stronger demand for short positions.

XLM continues to underperform

Stellar (XLM) remains under pressure on Tuesday after recording modest declines during the previous session. XRP is drifting toward the psychologically important $1.00 level, while XLM has slipped below a key support zone.

Weakening derivatives-market indicators are limiting the prospects of an immediate recovery for XLM. Declining long-to-short ratios, negative funding rates and rising open interest suggest that traders are increasingly positioning for further price declines.

XLM's long-to-short ratio has fallen to 0.90 on Tuesday, approaching its lowest level in more than a month.

A ratio below one indicates that short positions outnumber long positions, meaning more traders are betting that the assets will decline. The current readings suggest that bearish sentiment is particularly strong among XLM traders.

… Continue reading the full article at the original source below.